ANNUITIES
Annuities are financial products designed to provide a steady stream of income during retirement or over a specified period. Key features include:
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Investment and Distribution: Annuities are typically purchased with a lump sum or periodic payments and can be distributed as a series of payments.
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Types of Annuities: They come in several forms, including fixed, variable, and indexed annuities, each offering different levels of risk and potential returns.
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Tax Deferral: Annuities often provide tax-deferred growth on earnings until withdrawals begin, potentially offering tax advantages for retirement savings.
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Income Options: Annuities can provide guaranteed income for life or a specific period, addressing longevity risk for retirees.
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Death Benefits: Some annuities include death benefits that ensure beneficiaries receive a portion of the annuity’s value if the owner dies before receiving the full benefit.
Annuities are a popular tool for retirement planning, offering flexibility, tax advantages, and guaranteed income options, depending on the type and terms chosen.
