You may be wondering, when it comes to different types of insurance, what are annuities?
Put simply, annuities are a financial tool that earns interest over time and provides a stream of money over a certain amount of time, mainly meant to fund an individual’s retirement plan. They can be owned by an insurance company. Annuities make funding your retirement easier, especially in our case because annuities with Elisha Hudson Insurance are protected from market volatility so that your retirement plan doesn’t become derailed due to negative impacts from market unpredictability.
Benefits
There are various benefits to annuities…
- Annuities allow you to either supplement or increase your retirement income in order to plan better for your future
- You receive great returns on principal
- Your retirement account will be protected from the volatility of the market
- You’ll still be able to make market-like profits
- The income you’ll be receiving for your retirement is fixed and guaranteed for life
These are the main benefits of having annuities in place for your retirement planning, but many people seem to think that annuities are too complex, and so they do not end up making them a part of their retirement planning. This is not the case, there are just many different kinds of annuities, therefore, it is best to pick the kind that is best for you.
Annuities can be designed to meet your specific and unique needs. The best part, you’re able to manage how much risk you’re comfortable with and the money can even be used for your family and loved ones if you die during retirement.
Annuities are tax-deferred, meaning you will not pay taxes on anything until you’re actually ready to retire and receive the funds. Many people who worry about outliving their retirement savings are those that prioritize annuities the most.
Overall
Annuities are an interest-bearing tool to provide retirement income for you and your family where the amount of risk you’re comfortable with can be customizable. All funds are not taxed until you’ve reached the retirement phase of your life and you’re ready to receive the money you’ve been planning for over the years. Retirement saving is an essential aspect of planning your future not just for yourself, but with your loved ones in mind as well. Without any streams of income coming in during your retirement, you’ll be sure to feel the financial strain on the rest of your family.
If you have further questions or would like to book an appointment with us for more information, contact us today!