One of the many reasons why people are hesitant to invest as a way to save towards retirement is because the market is not stable. Even though the market hasn’t been stable in the last few years, it’s always been common for it to go up and down over time. If you find yourself in this situation, it’s understandable but it’s also good to know that you have another option which provides more of a guarantee. We’re talking about annuities and The Financial Guys can help you determine if an annuity is right for your retirement planning or as part of your retirement portfolio.
What exactly is an annuity?
An annuity is an agreement that’s made between you and an insurance company. In the agreement you agree to pay the insurance company either a lump sum of money totaling a certain amount or a number of payments over time. In return the insurance company agrees to make payments to you on a periodic basis, usually beginning on a future date (immediate payments may also be an option).
By providing money to the insurance company, they can then draw on assets in order to make payments. Annuities may include a death benefit that will guarantee your spouse receives a certain amount of money upon your death. Annuities differ in many ways from other retirement options but one of the main ways that they differ is that there are no income limits on how much you can put into your annuities.
Are there different types of annuities?
There are immediate annuities and deferred annuities which can further be broken down into variable and fixed annuities. The Financial Guys will help you determine which type will suit your retirement needs.
What you get with an annuity is a guarantee that you will receive the amount of money per your agreement with the insurance company at the designated time or times set forth. This can provide you with the comfort and peace of mind that you have a certain amount of money guaranteed for your retirement.
The Financial Guys of western New York can answer all of your questions about annuities and find the right annuity for you to help you save for your retirement.
Guarantees are based on the claims paying ability of the issuing company and do not apply to the investment performance or safety of the investment options.