Immediate Annuities in Madison
Retirement planning has changed a lot over the years and will continue to do so. The number of pensions that are available is dwindling year after year and the future of Social Security is up in the air. This means it’s very important to prepare now for what lies ahead in retirement. An immediate annuity is an insurance product that have helped people accomplish this goal.
What Are Immediate Annuities?
First, let’s discuss annuities in general. Basically, an annuity is a financial product that functions as an agreement between a person and an insurance company. The person buying the annuity makes a lump sum payment to the company, who agrees to make payments back to the owner at a predetermined time. There are two basic types of annuities, deferred and immediate, that determine how these payouts occur. While deferred annuities don’t start until a later time, immediate annuities can start immediately.
Immediate annuities are often selected by those who want steady income payments and need them to start soon. The growth of the money 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an immediate annuity is tax-deferred, which means you do not need to pay taxes on this increase until the money is withdrawn.
You have many different options when it comes to immediate annuities, which can make this choice difficult. To help you make an informed 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 select an immediate annuity that will best meets your needs.
Meet with one of our knowledgeable financial professionals to learn more about Madison immediate annuities. We will be happy to talk about your financial situation and retirement goals to decide if one of these products would be a good fit for you. Call us today and set up your appointment.