Immediate Annuities in Madison
No matter what we prefer, retirement planning is changing and will continue to do so. While pensions and Social Security have been reliable options for retirement income, they are shifting to a point where they will only be available to some. This is why it is important for people to prepare today for their retirement future. In order to achieve this goal, many have chosen immediate annuities.
What Are Immediate Annuities?
First, let’s discuss annuities in general. Annuities are financial products that function as an agreement between an individual and a financial institution. The person buying the annuity makes a lump sum payment to the company and the company agrees to make payments back to the owner at a later time. Relating to when these payments occur, there are two basic types of annuities: deferred and immediate. Deferred annuities include payouts that are pushed aside to a later time; the payouts of immediate annuities can start immediately.
Immediate annuities are often chosen by those who want steady income payments to start within a short amount of time. Another important feature of these annuities is they are tax-deferred, which means you do not have to pay taxes on this increase until the money is withdrawn.
There are several companies out there that sell immediate annuities, providing you with a lot of options. The great thing about working with Retirement Income Strategies for wealth management is that we are able to work with many of these financial institutions to provide our Madison customers with options. This allows us to find the immediate annuity that will best meets your needs.
Meet with one of our knowledgeable financial professionals to learn more about immediate annuities in Madison. After a simple conversation on your current finances and retirement goals, we will be able to determine if an immediate annuity is a good choice for you. Please give us a call today to set up your appointment.