Immediate Annuities in Madison
The products we rely on to plan for retirement have changed a lot over the years. While Social Security and pensions have been dependable options for retirement income, they are shifting to a point where they will only be available to some. This means it is very important to prepare now for what lies ahead in retirement. An immediate annuity is an insurance product that can help people accomplish this goal.
What Are Immediate Annuities?
First, let’s discuss a general definition of annuities. Annuities are financial products that function as an agreement between a person 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 types of annuities, deferred and immediate, that determine how and when these payouts occur. Deferred annuity payments occur at later date while immediate annuities can start payouts within a few weeks.
Immediate annuities are typically selected by retirees who want steady income payments to start within a short amount of time. Another important feature of these annuities is they feature tax-deferred growth, which means you do not have to pay taxes on this increase until the money is withdrawn.
There are several companies out there that market immediate annuities, providing you with many different options. By working with Retirement Income Strategies, you will gain access to many of these companies and have options available as you select a Madison immediate annuity. This structure allows us to select the immediate annuity that will best fit your needs.
Want to learn more about Madison immediate annuities? Talk to one of our experienced financial professionals. We’ll be happy to talk about your financial situation and retirement goals to determine if one of these products would be a good fit for you. Call us now to set up your appointment.