Madison Immediate Annuities
Whether we like it or not, planning for retirement is changing and will continue to change. While Social Security and pensions have been reliable options for retirement income, they have shifted to a point where they will only be supplemental or even non-existent. 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.
About Immediate Annuities
First, it’s important to understand what annuities are. Annuities are financial products that function as an agreement between an individual 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. There are two basic types of annuities, deferred and immediate, that determine how and when these payouts occur. Deferred annuities include payouts that are pushed aside to a later date; the payouts of immediate annuities can start immediately.
For those looking for recurring income payments within a short amount of time, immediate annuities can be a great choice. The growth of the funds placed within an immediate annuity is tax-deferred, which means you aren’t required to pay taxes on this increase until the money is withdrawn.
Because there are many companies that sell them, there are several options when it comes to immediate annuities. By working with Retirement Income Strategies, you’ll have 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 meets your needs.
Want to learn more about immediate annuities in Madison? Speak with 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. Please call us now to set up your appointment.