MONDAY, AUGUST 16, 2021
People are living longer, which makes saving for retirement even more important. Starting early means more money later in life. But what happens once you’ve exceeded your annual 401(k) and IRA contribution limits? You can continue socking money away with an annuity, which is another investment tool that is often used as part of a larger retirement plan.
With an annuity, you have many options for how you receive your future payments. You can choose a deferred annuity, in which your money is invested for a period of time until you begin withdrawing, typically once you reach retirement age. Or you can choose an immediate annuity, in which you begin receiving payments soon after you start investing. If payments aren’t right for you, you can also withdraw a lump sum.
As with any investment, you must select how aggressive you wish to be with your money. A fixed annuity guarantees a fixed sum payout, which is a safer bet that may result in modest earnings. A variable annuity’s payout is tied to the performance of the investment, which may result in much higher or much lower earnings.
If you wish to receive future payments, you have four options for how you wish to be paid.
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Payments for a Guaranteed Period: You will receive a predetermined payment amount for a period of time, such as ten years. You name a beneficiary, who will receive the rest of your payments if you die during the payment period.
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Lifetime Payments: You will receive a predetermined payment amount for the rest of your life. However, there are no survivor benefits; payments stop with you.
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Payments for Life with a Guaranteed Period Certain Benefit: You will receive a predetermined payment amount for the rest of your life, including a period of time during which you can name a beneficiary.
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Joint and Survivor Annuity: You will receive a predetermined payment amount for the rest of your life. You also name a beneficiary who will receive payments for the rest of his or her life as well.
Does an annuity sound like an ideal investment tool for you and your family? Call your independent insurance agent for more details.
Start planning your future today. Call Two Rivers Benefits Consultants at 732-842-6200 for more information on annuities.
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