Annuities are a great option to consider as part of your retirement plan. They are a contract between you and an insurance company, where the company agrees to make payments to you in the future, either immediately or over a period of time. You can purchase an annuity by making a series of payments or paying a lump sum.
Annuities provide a variety of benefits for retirement income management, including:
- Death benefits: if you pass away before receiving payments, your beneficiary will receive them instead.
- Periodic payments: you can choose to receive payments for the rest of your life, or for the life of your spouse or children.
- Tax-deferred growth: you don’t pay taxes on the investment gains or income from the annuity until you withdraw the funds.
There are three main types of annuities: fixed, variable, and indexed. Many people use annuities to provide a steady stream of income during retirement, and they can be especially helpful in managing living expenses.
At Buckalew Financial Services, we specialize in helping our clients understand annuities and their benefits. If you’re interested in learning more about how annuities can be part of your retirement plan, give us a call. We’ll be happy to discuss the options available in your state and help you decide if an annuity is a right solution for you.
*Note: Not all benefits are available in every state, but we can provide further information on this once you contact us.