Annuities are investments that can provide guaranteed lifetime income. Here's everything you need to know about them. Annuities attract buyers looking for a steady stream of retirement income, but consider the pros and cons before buying these insurance products. Money inside an annuity grows tax-deferred. Gains on the amount of premium invested in the contract grow with no taxes due until the money is withdrawn. One reason to choose a variable annuity rather than a fixed annuity is as an inflation hedge. Used right, variable annuities can maintain your purchasing power in retirement. Discover how a fixed index annuity can offer consistent retirement income, based on market indices.
The best annuity companies can provide a stable income during your retirement. Make an informed choice for your future by researching and comparing different options available. The amount a $2 million annuity pays depends on factors such as whether you want your monthly lifetime income payments to start immediately or at a later date. Annuities have pros and cons, including tax-deferred growth and a guaranteed income for life. However, it's important to weigh these benefits against potential drawbacks before making a decision.
When considering your financial plan for retirement, it's essential to address overlooked vulnerabilities. One such vulnerability is the possibility of your advisor retiring before you do. This could leave you without the guidance and support you need to make informed decisions about your investments and retirement savings. By understanding annuity investments and how they can fit into your overall retirement strategy, you can better prepare for a secure financial future.