Madison Immediate Annuities
The products we rely on to plan for retirement have changed a lot over the years. It’s tough to rely on Social Security when its future is uncertain. Because of this, it’s important that people prepare today for their future. For many people, an immediate annuity is a product that can assist with accomplishing this goal.
About Immediate Annuities
First of all, it’s necessary to understand what annuities are. At its base level, an annuity is a financial product that functions 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 at a predetermined time. In respect to when these payments happen, there are two basic types of annuities: deferred and immediate. While deferred annuities don’t start until a later time, immediate annuities can start immediately.
Immediate annuities are often selected by retirees who are looking for steady income payments to start within a short amount of time. The growth of the money 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an immediate annuity is tax-deferred, which means you aren’t required to pay taxes on this increase until the money is withdrawn.
You have many different options when it comes to immediate annuities, which can make this choice difficult. To help you make an informed decision on immediate annuities, Retirement Income Strategies is independent, meaning it will provide you with access to products from several different companies. This allows us to find an immediate annuity that will best fit your needs.
Learn more about immediate annuities by talking to one of our experienced financial professionals in the Madison area. We would love to talk about your financial situation and retirement goals to decide if one of these products would be the right choice for you. Call us now to schedule your appointment.