Madison Immediate Annuities
Planning for retirement has changed a lot over the years and will continue to do so. 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. For many, an immediate annuity is a product that could assist with accomplishing this goal.
About Immediate Annuities
Before we can get into the details of this product, we must first discuss annuities in general. An annuity is a financial product that functions as an agreement between a person and a financial institution. 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 kinds of annuities, deferred and immediate, that determine how these payouts occur. Deferred annuity payments start at later date while immediate annuities can start payouts within a few weeks.
Immediate annuities are often chosen by retirees who are looking for steady income payments and need them to start soon. Another attractive feature of these annuities is they are tax-deferred, which means you don’t have to pay taxes on this increase until the money is withdrawn.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 the decision difficult. A great thing about choosing Retirement Income Strategies for your retirement planning is that we are able to work with several of these financial institutions to provide our Madison customers with options. Through this structure, we are better equipped to find an annuity that fits your needs.
Learn more about immediate annuities by meeting with one of our experienced financial professionals in the Madison 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 and set up your appointment.