Immediate Annuities in Fitchburg
No matter what we prefer, 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 available to some. Because of this, it’s important that people prepare now for their future. To achieve this goal, many people have turned to immediate annuities.
About Immediate Annuities
First, let’s discuss a general definition of annuities. Basically, an annuity is a financial product that functions as an agreement between an individual and an insurance company. The person agrees to make a lump sum payment to the financial institution, who agrees to make regular payments back to the person at a predetermined time. There are two basic types of annuities, deferred and immediate, that determine how and when these payouts occur. Deferred annuities feature payouts that are pushed aside to a later time; the payouts of immediate annuities can start immediately.
For those looking for steady income payments within a short amount of time, immediate annuities are a common selection. 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an immediate annuity is tax-deferred, which means you do not need to pay taxes on this increase until the money is withdrawn.
Because there are numerous companies that sell them, there are a lot of options when it comes to immediate annuities. The great thing about choosing Retirement Income Strategies for retirement planning is that we are able to work with many of these financial institutions to provide our Fitchburg clients with options. Through this structure, we are better equipped to find an annuity that fits your needs.
Ready to learn more about immediate annuities? Talk to one of our experienced financial professionals in the Fitchburg area. We would love to talk about your financial situation and retirement goals to determine if one of these products would be the right choice for you. Call us today to schedule your appointment.