Understanding Annuities and Their Benefits
Annuities are insurance contracts that provide guaranteed income for life or for a set period of time. They can be a valuable addition to your retirement portfolio with benefits such as:
- Guaranteed Income: Annuities provide a reliable stream of income for as long as you need it. This income isn’t affected by stock market volatility.
- Tax-Deferred Growth: Earnings from the annuity grow tax-deferred until withdrawn. This allows more of your money to work toward generating income.
- Lifetime Payouts: Many annuities offer payout options that last for your entire life. This protects against the risk of outliving your assets.
- Death Benefits: Most annuities pay out a death benefit to your beneficiaries if you pass away during the accumulation or payout phase.
- Flexibility: There are many types of annuities that can be tailored to your specific needs, including deferred, immediate, fixed, variable, and indexed annuities.
- Principal Protection: Your principal is protected from market losses in certain types of annuities.
- Probate Avoidance: Annuity assets pass directly to beneficiaries, avoiding the delays of probate.
Our annuity specialists can help explain the costs, benefits, and tradeoffs of different annuity products. We’ll assess your retirement goals, time horizon, and risk tolerance to identify the optimal annuity strategies for you. Contact Ocean City Financial Group today to learn more about how annuities can contribute to your retirement income plan.
