What is an annuity?
Annuity: An annuity is a contract between you and an insurance company. You can make a lump-sum payment or even a series of payments. In return, the insurer agrees to make periodic payments to you (or another named annuitant) beginning immediately or at some future date. There are many types of Annuity products so you must be diligent in choosing the correct type. This will help make sure you choose the best one for your needs. The two most common types of Annuity products are Fixed and Variable and are available in different terms i.e. 3, 5, 7, 10 years etc. Depending on the purpose of your money, many companies will offer various types of annuities that will best suit your needs. The annuity in today’s market is much more diverse than in previous years. Insurance companies give you options of enhanced death benefit rider, income rider options or a combination of the two.
An annuity is best utilized as a retirement plan in which many individuals will “Roll Over” their current plans offered through the employer until finally leaving the company. The most typical example of retirement plans are the traditional 401k, 403(b), 457(b), TSP etc. which one will roll over into an annuity to continue to defer their taxes.
If you would like more information on how to find the best annuity for you, please contact me today. I can give you a comparison of what is available.
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