Immediate Annuities in Madison
No matter what we prefer, planning for retirement is changing and will continue to do so. It’s tough to bank on Social Security when its future is in doubt. This is why it is important for people to prepare now for their retirement future. In order to reach this goal, many have chosen immediate annuities.
About Immediate Annuities
First of all, it’s important to understand annuities in general. At its base level, an annuity is a financial product that functions as an agreement between an individual and an insurance company. On one side, the annuity owner makes a lump sum payment to the company. On the other side, the company agrees to make regular payments back to the individual at a later time. There are two basic types of annuities, deferred and immediate, that determine how these payouts occur. While deferred annuities don’t begin until a later time, immediate annuities can start immediately.
Immediate annuities are often chosen by those 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an immediate annuity is tax-deferred, which means you aren’t required to pay taxes on this increase until the money is withdrawn.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 numerous companies that sell them, there are several 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. Because of this, we’re better equipped to find an annuity that meets your needs.
Ready to learn more about immediate annuities? Talk to one of our experienced financial professionals in the Madison area. We’ll be happy to talk about your financial and retirement goals to determine if one of these products would be a good fit for you. Please call us today to set up your appointment.