When it comes to types of investments, annuities are often misunderstood. Annuities can play an important role in your retirement plan because it’s not just about saving, it’s also about generating a steady stream of income so you can retire comfortably.
Are annuities right for you? Here are some 3 myths debunked that may help you with your decision:
All annuities are the same. Annuities come in many forms and options. They are divided into two general categories based on when income distributions are scheduled to begin:
- Deferred annuities – With a lump sum payment or a series of premium payments, you defer the payout by having your money invested for a period of time until you’re ready to take withdrawals (typically in retirement).
- Immediate annuities – With a lump sum payment upfront, your income stream begins right away (no accumulation period) and continues for the remainder of your life or for a specified period of time.
Annuities are expensive. While there are fees associated with annuities, it doesn’t mean all annuities are expensive. Keep in mind that the fees can vary depending on the services and features it offers. You will want to a full understanding of the type of annuity you’re considering and then weighing it against your other options.
The insurance company will keep all my money when I die. In the event of your death, there are annuities that offers the option to have your income payments or account value passed onto your beneficiaries.
As your dedicated team, we’re here to educate and guide you through life’s transitions and the difficult decisions that come with it. Contact us at (228) 209-0442 or click here to schedule a free phone call consultation today to learn more about how annuities can fit in your retirement plan.
Click here for more information on annuities.
Comments