Madison Immediate Annuities
The products we rely on to plan for retirement have changed a lot over the years. While pensions used to be very common, they have become increasingly rare. This means it’s very important to prepare now for what lies ahead in retirement. For many people, immediate annuities are a product that could help them accomplish this goal.
What Is An Immediate Annuity?
First of all, it’s important to understand what annuities are. An annuity is a financial product that functions as an agreement between a person and an insurance company. The individual makes a lump sum payment to the financial institution, who makes regular payments back to the person throughout the life of the annuity. Relating to when these payments happen, there are two basic types of annuities: deferred and immediate. Deferred annuity payments occur at later date while immediate annuities can start payouts almost immediately.
For those in need of regular income payments within a short amount of time, immediate annuities can be a great choice. Another important feature of these annuities is they are tax-deferred, which means you aren’t required to pay taxes on this increase until the money is withdrawn.
There are several companies out there that sell immediate annuities, providing you with many different options. By working with Retirement Income Strategies, you’ll gain access to many of these companies and have options available as you select a Madison immediate annuity. Through this structure, we are better equipped to find an annuity that meets your needs.
Find out more about immediate annuities by talking to one of our experienced financial professionals in the Madison area. We would love to talk about your financial situation and retirement goals to decide if one of these products would be a good fit for you. Please call us today and set up your appointment.