Immediate Annuities in Madison
Planning for retirement has changed dramatically throughout the years and will continue to do so. It is quite difficult 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. An immediate annuity is a product that have helped people accomplish this goal.
What Are Immediate Annuities?
Before we can explain the specifics of this product, we need to discuss annuities in general. An annuity is a financial product that functions as an agreement between an individual and a financial institution. Whoever is buying the annuity makes a lump sum payment to the company and the company agrees to make payments back to the owner at a predetermined time. In respect to when these payouts occur, there are two basic kinds of annuities: deferred and immediate. Deferred annuity payments start at later date while immediate annuities can start payouts within a few weeks.
For those in need of regular income payments within a short amount of time, immediate annuities can be a great choice. Immediate annuities are tax-deferred, which means you don’t have to pay taxes on this increase until the money is withdrawn.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. A great thing about working with Retirement Income Strategies for your wealth management is that we are able to work with many of these financial institutions to provide our Madison clients with options. This structure allows us to find an immediate annuity that will best fit your needs.
Want to learn more about immediate annuities in Madison? Meet with one of our experienced financial professionals. After a simple conversation on your current finances and retirement goals, we will be able to determine if an immediate annuity is right for you. Call us today and schedule your appointment.