Immediate Annuities in Madison
Whether we like it or not, retirement planning is changing and will continue to do so. The amount of pensions is dwindling each year and the future of Social Security is up in the air. Because of this, it’s important that people prepare today for their retirement future. In order to accomplish this goal, many people have chosen immediate annuities.
About Immediate Annuities
First, let’s discuss a general definition of annuities. Basically, an annuity is a financial product that is an agreement between an individual 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 later time. There are two basic kinds of annuities, deferred and immediate, that determine how and when these payouts occur. While deferred annuities don’t start until a later date, immediate annuities can start immediately.
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 Immediate annuities are tax-deferred, which means you do not have to pay taxes on this increase until the money is withdrawn.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. The great thing about working with Retirement Income Strategies for your retirement planning is that we are able to work with many of these financial institutions to provide our Madison clients with options. This allows us to select an immediate annuity that will best meets your needs.
Want to learn more about Madison immediate annuities? Talk to one of our knowledgeable financial professionals. We’ll be happy to discuss your financial and retirement goals to decide if one of these products would be the right choice for you. Please give us a call now to schedule your appointment.