When planning for your retirement, annuities can serve as a valuable addition to your overall financial strategy, enabling you to accumulate tax-deferred earnings while ensuring a secure future payout. The versatility of annuities within a well-designed financial plan is vast and varied. At Allen & Furr Insurance in Roswell, Georgia, we are dedicated to addressing all your queries and exploring how annuities can positively impact your financial future.
In the realm of retirement planning, fixed annuities play a pivotal role. While pensions and Social Security contribute to your retirement income, they might not suffice to support the lifestyle you envision. Fixed annuities, however, offer a practical solution by aiding your retirement savings and providing an additional income stream throughout your post-work years.
What Exactly is a Fixed Annuity?
Essentially akin to a CD-type investment, a fixed annuity is issued by an insurance company. Contributions to the annuity, either as a lump sum or through periodic payments, guarantee future payments for a specified period or for the duration of your lifetime.
How Can Fixed Annuities Bolster Retirement Planning?
Fixed annuities are intricately designed to fortify your retirement savings and ensure a consistent income stream during your golden years. They come with an array of advantages, including:
- Potential for tax-deferred growth
- Shield from market fluctuations, aiding in countering rising medical costs and inflation
- Flexible options for receiving income
- Joint-life payout options for you and your spouse during retirement
- Provision of a death benefit for your beneficiaries or a cause close to your heart
Fixed annuities can be categorized as immediate or deferred. Deferred fixed annuities accrue interest at a regular rate, while immediate fixed annuities offer fixed payments during your retirement, with amounts determined by your age and the annuity’s value. The fee structures associated with fixed annuities may vary, and understanding these costs without professional guidance can be challenging. Should you be contemplating a fixed annuity to enhance the quality of your retirement, our team at Allen & Furr Insurance is here to guide you through the process, ensuring you find the right insurance product for you and your spouse.