Fixed annuity contracts are one very common way to save for retirement. People usually purchase annuities in order to reach some sort of medium to long range savings goal, which could include having a guaranteed payout at retirement. We want to help you understand how these can be valuable tools for retirement planning by listing some details and advantages of annuities.
If you are nervous about other forms of investment or savings, it is worth a moment to understand how these work.
Tax Deferred Growth
You will not pay any interest on the compounding or interest until the money is withdrawn. This can be a major advantage over bank CDs or money market funds which require you to report your income every year.
Higher Interest Rates
You can find better returns on annuities than on typical bank savings account or CDs these days. Yes, you must commit to keeping them for a period of years or paying a penalty, but this can be true of many bank investment vehicles as well.
Guaranteed Returns
If you invest in stocks or money markets, you can lose money. It is easy to find safe fixed annuities with guaranteed return rates, even during market downtrends like we have just experienced.
Flexibility
It is important for you to understand your goals, know how much money you can put aside, and for how long. But with that in mind, you can find a variety of options that will work out best for you. Some contracts only take one large lump sum as an investment, while others may be grown over a period of years. Some contracts defer payouts for years as money grows, but others pay out right away, providing immediate income.
Find the best choices for you.
Take a couple of minutes to fill out our online form, and then relax as you get free annuity quotes.
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