Immediate Annuities in Madison
Planning for retirement has changed a lot over the years and will continue to do so. It’s tough to depend on Social Security when its future is uncertain. This means it’s very important to prepare now for what lies ahead in retirement. For many people, an immediate annuity is a product that can help them accomplish this goal.
About Immediate Annuities
Before we can explain the specifics of this product, we need to talk about annuities in general. At its base level, an annuity is a financial product that is an agreement between an individual and an insurance company. On one side, the owner of the annuity makes a lump sum payment to the company. On the other side, the company agrees to make regular payments back to the individual at a later time. There are two basic kinds of annuities, deferred and immediate, that determine how and when these payouts occur. Deferred annuity payments start at later time while immediate annuities can start payouts within a few weeks.
For those looking for recurring income payments within a short amount of time, immediate annuities can be a great choice. The growth of the funds placed within an immediate annuity is tax-deferred, which means you do not need to pay taxes on this increase until the money is withdrawn.
Because there are numerous companies that sell them, there are several options when it comes to immediate annuities. To help you make a good decision on immediate annuities, Retirement Income Strategies is independent, meaning it can provide you with access to products from several different companies. This structure allows us to find an immediate annuity that will best meets your needs.
Want to learn more about immediate annuities in Madison? Meet with one of our experienced financial professionals. After a short conversation on your current finances and retirement goals, we should be able to figure out if an immediate annuity is a good choice for you. Give us a call today and set up your appointment.