What are annuities?

matching your retirement goals with smart annuities

Do you feel worried about the possibility of outliving your saved income? If so, you can take action to reduce or eliminate this risk. By investing in an annuity, you are setting the gears in motion to receive secure income during your retirement no matter how long you live!

understanding annuities

Annuities are a type of long term contract which can be purchased from various insurance companies. In short, it pays out income through a set, or series, of dates in the future. Annuities are a popular choice for individuals or investors who wish to receive guaranteed steady income throughout the retirement years.

how an annuity works

Once you’ve invested in an annuity right for you, arrangements can be made to be paid on monthly, quarterly, annually or lump sum basis. You can choose to be paid for the rest of your life or for a set number of years. The amount of income you receive from your annuity is determined by factors such as your age, the length of time it’s been accumulating and your initial investment amount.

Which Annuity May Best Fit Into Your Retirement Investment Plan?

Whether your income needs are immediate, you’re planning for the long term, or somewhere in between you can choose the following options.

Immediate Annuity

Immediate annuities are generally purchased with a lump sum. This investment is converted into a guaranteed stream of income immediately or within a year, and cannot be revoked once payments have begun.

fixed annuity

In the case of fixed annuities, the principal investment and earnings are protected from loss, while growing at a guaranteed fixed interest rate based upon a specified equity-based index, a group of indices, T-bonds, fixed account and even gold in some cases. Lifetime income payments can be structured to begin payouts at your discretion and are guaranteed to last for life, no matter how long you live.

fixed indexed annuity

Considered a special class of annuities, fixed indexed annuities yield a return on contributions based upon a specified equity-based index. Fixed indexed annuity is not an investment in the stock market and does not participate in any affiliated investment. You can choose to link your annuity to the performance of various markets and participate in market gains while resting easy knowing that nothing will be lost due to market downturns due to protection of principle guaranteed by an Fixed Indexed Annuity. However, nothing will be lost due to the market downturns due to protection of principal guaranteed by an FIA.

Making the Right Choice with “My Retirement Edge LLC”

Annuities are not always a viable solution for everyone, therefore, it’s advisable to partner with a retirement planning firm to help you decide whether or not this type of investment is appropriate. “My Retirement Edge LLC,”” can empower you with the education you need to make the right choice. Should you choose an annuity investment, our consultants will work alongside you to find a flexible annuity plan suited to your personal needs and lifelong goals.