What is an Annuity?
It's a contract in which an insurance company pays out a series of income payments at regular intervals in return for a premium or premiums you have paid. Typically annuities are purchased for future retirement income. Annuities can be either immediate or deferred.
What are some Benefits of Annuities?
- Income for life
- Protection from probate and creditors
- Cash growth possibilities
- Guaranteed Lifetime Income
- Minimum Guarantees
- Preservation of Premium
- Adverse to risk
Types of Annuities:
- Fixed Indexed Annuity
- Variable Annuity
- Fixed Annuity
- Deferred Annuity
- Immediate Annuity
- Single-Premium Annuity
- Flexible-Premium Annuity
Points to Ponder Regarding Annuities:
- At this stage of your life, what is more important, keeping what you have or accumulating more wealth with risk?
- Considering safety with growth, what do you consider a fair rate of return?
- What rate of return are you hoping to achieve over the next few years?
- What is your risk tolerance: High - Medium - Low - None?
- Do you need any income from your investment accounts? If so, when?
- Will you be adding more money?
- When or under what circumstances do you expect to access the money/annuity?
- If you could fix just one thing today, what would it be?