When it comes to retirement strategies, annuity plans are among the most commonly utilized insurance products. Annuities are simple and, to a great extent, risk-free ways to ensure a steady stream of income generated from your investment. At The Jordan Insurance Agency, we help clients find the most feasible and suitable annuities to support their post‐retirement income.
Understanding How Annuities Work
All you are required to do is invest in an annuity. Different insurance institutes offer a variety of annuity packages. We can help you find one that complements your future goals. Once you have invested, you can choose when the annuity will start making payments. Annuity plans offer the flexibility of choosing a future date or a series of dates. You also have the freedom to get your income through monthly, annual, quarterly, or lump sum payments.
There are a variety of factors that determine the size of the payment. One of the major factors here is the type of annuity you choose.
Types of Annuities
As we mentioned, the type of annuities and related terms may vary according to the product offered by your insurance company. Loosely categorizing, there are four types of annuities you should learn about.
- Fixed Annuities – This is the most basic and risk‐free type of annuity that guarantees a payout in any case.
- Variable Annuities – The payout of these annuities depend on the underlying performance of the investments you make.
- Immediate Annuities – You can receive the payment of immediate annuities as soon as you invest.
- Deferred Annuities – Deferred annuities make for long‐term investments and that is why considered a good retirement vehicle. Your money is invested for a fixed amount of time after which you can withdraw the payouts.
More about Annuity Plans and Retirement
While you may have many investment options for your retirement, annuities defer you from paying taxes despite a large amount of money. Moreover, it has a clear advantage over other retirement plans including IRAs, due to its flexibility. There is no annual contribution limit for an annuity.
Coupling your retirement savings and social security plans with fixed and deferred annuities is a smart financial decision. Working with the best insurance companies in Charlotte, The Jordan Insurance Agency can help you reap maximum benefits out of your investment.
