Sun Prairie Immediate Annuities
Whether we like it or not, retirement is changing and will continue to do so. It is tough to depend on Social Security when its future is uncertain. Because of this, it’s important that people prepare now for their future. For many, immediate annuities are a product that could help them accomplish this goal.
What Are Immediate Annuities?
Before we can explain the details of this product, we need to talk about annuities in general. Basically, 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 kinds of annuities, deferred and immediate, that determine how and when these payouts occur. Deferred annuities include payouts that are pushed aside to a later date; the payouts of immediate annuities can start immediately.
For those looking for recurring income payments within a short amount of time, immediate annuities can be a great choice. Another important feature of these annuities is they are tax-deferred, which means you aren’t required to pay taxes on this increase until the money is withdrawn.
There are many companies out there that market immediate annuities, providing you with a lot of options. The great thing about working with Retirement Income Strategies for your retirement planning is that we are able to work with several of these financial institutions to provide our Sun Prairie customers with options. This structure allows us to find an 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 Sun Prairie area. After a simple conversation on your current finances and retirement goals, we should be able to figure out if an immediate annuity is a good choice for you. Please give us a call now and set up your appointment.