๐๐ป๐ป๐๐ถ๐๐ถ๐ฒ๐ ๐ ๐ฎ๐ฑ๐ฒ ๐ฆ๐ถ๐บ๐ฝ๐น๐ฒ:
Many desire financial independence in retirement but often have concerns about outliving their money. One strategy that can help provide confidence is annuities. This article provides a roadmap to annuities for those considering purchasing one.
๐จ๐ป๐ฑ๐ฒ๐ฟ๐๐๐ฎ๐ป๐ฑ๐ถ๐ป๐ด ๐ฎ๐ป๐ป๐๐ถ๐๐ถ๐ฒ๐
Annuities are financial products offered by insurance companies that provide a steady stream of income that one can't outlive. Annuities are designed to provide a dependable source of income over a specific period or for life. There are two primary types of annuities โ immediate and deferred.
โข Immediateโ With an immediate annuity, payouts start when one purchases it.
โข DeferredโA deferred annuity allows the invested money to accumulate before payouts begin. This growth period can range from several years to decades.
๐๐ผ๐ ๐ฎ๐ป๐ป๐๐ถ๐๐ถ๐ฒ๐ ๐ฎ๐ฐ๐ฐ๐๐บ๐๐น๐ฎ๐๐ฒ ๐๐ฎ๐น๐๐ฒ
Annuities can also be fixed, fixed-indexed, and variable, impacting the accumulation.
Fixed annuities- accumulate at a guaranteed rate and provide fixed payments.
Fixed-indexed annuities- accumulate value based on the performance of an investment portfolio and have a sub-account that pays a fixed rate.
Variable annuities- the returns mimic market performance, depending on the underlying investments.
๐๐ป๐ป๐๐ถ๐๐ถ๐ฒ๐ ๐ฐ๐ผ๐บ๐ฒ ๐๐ถ๐๐ต ๐ฟ๐ถ๐๐ธ
Both have pros and cons. Fixed annuities provide a sense of security but a lower accumulation rate. Fixed-indexed annuities offer hi
