An annuity is a contract or an agreement between you and an insurance company that allows you to put money away for retirement, so you can get a guaranteed consistent "paycheck" after retirement. Annuities grow tax-deferred up until that annuity begins paying you a regular income. You contribute to an annuity–either in several payments over a period of time, or as a lump sum–to get regular payments in the future, and for the rest of your life. As a trade-off, annuities come with less liquidity than other investments.
How can annuities fit into your portfolio?
Annuities can be a great source for consistent retirement income. There are many different types of annuities to choose from depending on your goals, time frame, family situation, and risk tolerance. Annuities can be either immediate or deferred. When an annuity contract guarantees income, you want to be certain that your money will be there when you need it most. The insurance company's claims-paying ability and financial strength that back the guarantees are critical factors in any decision you make with your money.
Who needs an annuity?
Annuities are great for anyone wanting to fund or supplement their retirement savings, with an income stream that lasts for life.
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Our wealth management advisors can help you with annuities and determine if they can fit into your financial plan.
