Both fixed rate annuities and variable rate annuities share several common benefits. These benefits include:
Annuities are Ideal for Estate Planning: Upon your death, the proceeds of your annuity pass directly to your beneficiaries without delays or hidden fees.
Annuities are Tax Deferred: Thanks to this annuity tax deferral, you only pay taxes on earnings when you withdraw your annuity’s gains.
Annuities have No Contribution Limits: Unlike 401 (k)s and Individual Retirement Accounts, which are limited, annuities allow you to contribute as much as you want (up to the limits imposed by the insurer).
Annuities have Flexible Payment Options: 401 (k)s and IRAs require you to begin withdrawals at the age of 70 1/2. Annuities offer more flexibility through the following payment methods:
• Lump Sum distribution (one-time payment)
• Periodic distributions (withdraw money when you need it)
• Systematic distributions (a fixed or variable amount is withdrawn at regular intervals)
• Annuitization (fixed or variable payments, guaranteed for the rest of your life)
Annuities and Tax Control: Annuities are made up of two parts: principal and earnings. As long as you open your annuity with after-tax dollars, only your earnings are taxable.
Annuities are Easy To Start and Maintain: An application, a check, and a signature is all that stands between you and the beginning of your retirement savings.
Additional Annuity Benefits: These include:
• Annuities do not offset Social Security benefits.
• Annuities are easy to establish and often come with a “free look period.”
• You can exchange older, non-performing annuities into a newer fixed annuity with no tax consequences.
If you have any questions about what you have just read, or if you would like to know more about annuities and retirement planning, consult a financial advisor like Safe Retirement Solutions by calling 877-268-4086 or visit our website today!
We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.
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