De Forest Immediate Annuities
The products we rely on to plan for retirement have changed a lot over time. While pensions used to be very common, they have now become very rare. This means it’s very important to prepare now for what will happen in retirement. An immediate annuity is an insurance product that can help people accomplish this goal.
What Is An Immediate Annuity?
First, let’s discuss annuities in general. An annuity is a financial product that functions as an agreement between an individual and a financial institution. The person agrees to make a lump sum payment to an insurance company, who agrees to make regular payments back to the person at a predetermined time. Relating to when these payouts happen, there are two basic types of annuities: deferred and immediate. While deferred annuities don’t begin until a later date, immediate annuities can start immediately.
For those looking for steady income payments within a short amount of time, immediate annuities are a common selection. Immediate annuities are tax-deferred, which means you aren’t required to pay taxes on this increase until the money is withdrawn.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. A great thing about choosing Retirement Income Strategies for your retirement planning is that we are able to work with many of these financial institutions to provide our De Forest customers with options. This structure allows us to find the immediate annuity that will best fit your needs.
Want to learn more about immediate annuities? Talk to one of our experienced financial professionals in the De Forest area. After a simple conversation on your current finances and retirement goals, we will be able to figure out if an immediate annuity is a good choice for you. Give us a call today to set up your appointment.