No matter what we prefer, planning for retirement is changing and will continue to change. The amount of pensions that are available is dwindling year after year and the future of Social Security is up in the air. This means it’s very important to prepare now for what will happen in retirement. Immediate annuities are an insurance product that have helped people accomplish this goal.
What Is An Immediate Annuity?
First, let’s discuss annuities in general. Basically, an annuity is a financial product that functions as an agreement between a person and an insurance company. The annuity owner makes a lump sum payment to the company and the company agrees to make regular payments back to the owner at a later time. There are two basic kinds of annuities, deferred and immediate, that determine how and when these payouts occur. Deferred annuity payments start at later date and time while immediate annuities can start payouts almost immediately.
Immediate annuities are often selected by people who are looking for steady income payments to start within a short amount of time. The growth of the money placed within an immediate annuity is tax-deferred, which means you aren’t required to pay taxes on this increase until the money is withdrawn.
You have a lot of different options when it comes to immediate annuities, which can make this choice difficult. A great thing about working with Family Focus Financial Group for your retirement planning is that we are able to work with many of these financial institutions to provide our Wall Township customers with options. Because of this, we are better equipped to find an annuity that fits your needs.
Meet with one of our knowledgeable financial professionals to learn more about Wall Township immediate annuities. After a simple conversation on your current finances and retirement goals, we should be able to determine if an immediate annuity is right for you. Give us a call today and set up your appointment.