Annuities are a type of investment account typically used for retirement savings or to generate regular income payments in retirement. Annuities are insurance contracts, and the issuing insurance company provides some type of guarantee on your investment. There are many types of annuities, and the right one for you depends on your goal.
If you’re looking for income in retirement
Consider income annuities. Income annuities can provide a stable and secure source of retirement income. Payments from income annuities can typically start as early as 30 days from the day you sign the contract, as late as your 85th birthday, or on any date in between.
Consider a deferred annuity with a lifetime withdrawal benefit. Deferred annuities with lifetime withdrawal benefits offer a way to safely draw down your retirement assets by guaranteeing that, at a minimum, you will be able to withdraw a set percentage of your savings for the rest of your life. You retain access to your savings throughout the life of the annuity, and you have the opportunity to grow both your principal and your income stream over time.
If you’re still saving for retirement
Consider deferred annuities. The money you invest grows tax-deferred, so you won’t owe taxes on your earnings until they’re withdrawn. Depending on the annuity, you can invest in portfolios covering all the major asset classes, giving you a chance at long-term growth or lock in a specific interest rate so that you know exactly what you’ll earn.
Let the advisors at Black Harbor Wealth Management help you choose the best option that fits your retirement goals with a complimentary consultation.