Understanding Annuities
An annuity is a financial product that pays out income, and it is an ideal tool for managing your retirement savings. You make an investment in the annuity, and it then makes payments to you on a future date or series of dates. The income you receive from an annuity can be distributed monthly, quarterly, annually, or even in a lump sum payment.
Tailored Annuity Solutions
Our commitment is to tailor each annuity to fit the individual needs of our clients. Whether you’re looking for immediate income or planning for future needs, we have options to suit your retirement strategy.
Immediate Annuity: Immediate Payment Options
Deferred Annuity
Immediate Annuity: Immediate Payment Options
- Under an Immediate Annuity, you begin receiving payments immediately after the investment. These payments can be structured to last for a specified period or for your lifetime, providing flexibility and immediate financial benefit.
Deferred Annuity
- Deferred Annuities start payments at a future date, typically upon retirement. This plan allows for the accumulation of funds through either lump sum or periodic contributions, which can vary. Taxes on these contributions are deferred until withdrawals begin, making it a tax-efficient saving strategy.
Fixed Annuities
Variable Annuities
Fixed Annuities
- Fixed Annuities guarantee a consistent rate of return for a set period, generally ranging from one to 15 years. The investments are usually in safer avenues like government and corporate bonds. Two primary types include:
- Guaranteed Return Annuity (GRA): This ensures that you receive at least your full initial investment back, regardless of market fluctuations or early withdrawal penalties.
- Market Value Adjustment Annuity (MVA): Similar to GRA but without principal protection if interest rates rise and the annuity is surrendered.
Variable Annuities
- Variable Annuities allow investment in various market-linked portfolios or sub-accounts, providing potential for higher returns based on market performance. They include:
- Living Benefit Annuity (GRIB): Offers a guaranteed return of at least 5% over seven years or the highest value reached on an anniversary during the surrender period, at the cost of higher fees and a surrender charge.
- Guaranteed Lifetime Withdrawal Benefit Annuities: These annuities guarantee a regular payment stream for life, even if the account balance depletes, ensuring lifelong income.
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