Immediate Annuities in Madison
The products we rely on to plan for retirement have changed a lot over time. It is tough to rely on Social Security when its future is in doubt. This means it is very important to prepare now for what will occur in retirement. An immediate annuity is an insurance product that have helped people accomplish this goal.
What Are Immediate Annuities?
Before we can explain the specifics of this product, we must first talk about annuities in general. An annuity is a financial product that functions as an agreement between a person and an insurance company. The person buying the annuity makes a lump sum payment to the company and the company agrees to make regular payments back to the owner at a predetermined time. There are two basic kinds of annuities, deferred and immediate, that determine how and when these payouts occur. While deferred annuities do not start until a later date, immediate annuities can start immediately.
For those in need of recurring income payments within a short amount of time, immediate annuities are a common selection. The growth of the money placed within an immediate annuity is tax-deferred, which means you aren’t required to pay taxes on this increase until the money is withdrawn.
You have a lot of different options when it comes to immediate annuities, which can make the decision difficult. To help you make an informed decision on immediate annuities, Retirement Income Strategies is independent, meaning it will provide you with access to products from several different companies. Because of this, we’re better equipped to find an annuity that meets your needs.
Meet with one of our knowledgeable financial professionals to learn more about immediate annuities in Madison. After a short conversation on your current finances and retirement goals, we should be able to figure out if an immediate annuity is right for you. Give us a call now to schedule your appointment.