For some, retirement is many years away, for others it is right around the corner. Everyone should be saving and investing in their future. Purchasing an annuity provides several benefits that cannot be acquired anywhere else. annuities Ocala FL can help you decide how to prepare for your retirement.
An annuity is a contract created by a life insurance company when an individual (the insured) pays a premium that will later be distributed back to the insured party over time. Annuities are a guaranteed lifetime income. You can choose to make unlimited contributions to your premium or just a single contribution.
An annuity is protected from creditors or lawsuits. They cannot use an annuity to reduce or eliminate debts. The purpose of an annuity is to protect you during retirement. Beneficiaries cannot contest annuities. Whoever you state as the beneficiary will get your annuity.
There are a few different types of annuities. The fixed annuity offers minimum guaranteed interest rates. These funds are primarily invested in bonds and securities. A slumping economy won’t hurt your annuity. Fixed variables have nothing to do with the market and are guaranteed by the insurance company.
The variable annuity offers a potentially greater rate of return that reduces inflation risk. This contract is good for someone who is planning retirement late. You get a guaranteed minimum amount but the income amount may increase according to the performance of the funds your annuity is invested in. These are affected by the market, but have protections in place from a declining market
Immediate annuities offer payouts on the basis of a single contribution. The payout amount is based on whether you purchased a fixed or variable annuity and on the premium paid. Payout rates could be as much as 10% and are typically exempt from taxation regardless of payout amount.
Deferred annuities are when tax-exempt contributions are made over a period of time. When you receive your payments at retirement, you may then be taxed. Planning for your retirement is important. The extra money will get you through your golden years easier then if you had to work the rest of your life. annuities Ocala FL can help you. It’s never to early to plan for retirement.
