Immediate Annuities in Madison
The products we rely on to plan for retirement have changed a lot over the years. While pensions used to be very common, they have now become very rare. This is why it is important for people to prepare now for their retirement future. For many, an immediate annuity is a product that can help them accomplish this goal.
What Is An Immediate Annuity?
First, let’s discuss a general definition of annuities. Basically, an annuity is a financial product that functions as an agreement between a person and an insurance company. The annuity owner 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. Deferred annuity payments start at later time while immediate annuities can start payouts within a few weeks.
Immediate annuities are typically selected by people who want steady income payments and need them to start soon. 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an immediate annuity is tax-deferred, which means you aren’t required to pay taxes on this increase until the money is withdrawn.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 a lot of options when it comes to immediate annuities. By working with Retirement Income Strategies, you’ll gain access to many of these companies and have options available as you select a Madison immediate annuity. This allows us to select the immediate annuity that will best fit your needs.
Want to learn more about immediate annuities in Madison? Meet with one of our knowledgeable financial professionals. After a simple conversation on your current finances and retirement goals, we will be able to determine if an immediate annuity is a good choice for you. Please call us today to schedule your appointment.