These Are the Different Benefits of Annuities
Are you saving enough for retirement?
Experts suggest that you should set aside 10 to 15% of your annual income for retirement. They also say that you should start saving as early as your 20s.
If you’re not financially on track for your golden years, setting up an annuity can be the perfect solution. In this article, we’ll review the top benefits of annuities, and why you should get one.
So take a look! The sooner you start saving, the brighter your future will be.
Know Your Retirement Income
What are annuities? An annuity is a contract you purchase from an insurance provider. One of the biggest advantages of annuities is that you’ll be able to save for retirement.
Instead of wondering what your income will be when you retire, your annuity will help you determine an exact figure. As a result, you’ll be able to plan accordingly so that you can have the best retirement possible!
Being able to defer taxes is hands down one of the biggest benefits of annuities. It’s only when you go to withdraw your money that taxes will apply. Another benefit is that if a life emergency pops up, sites like https://www.rightwayfunding.com/ can help you get fast cash for your annuity.
2 Types of Annuities
There are 2 main types of annuities you can choose from to plan for your future or current retirement. First, there are immediate income annuities and second, there are deferred income annuities. For both options, your investments will be able to grow without any taxes.
Avoid Outliving Your Savings
Next, another 1 of the big annuity benefits is that you won’t have to worry about outliving your retirement savings. Instead, your annuities will continue to grow as you age.
The monthly payments for your annuities are determined using your age, as well as the current interest rates when you buy. Purchasing an annuity when your younger is a great way to get a low monthly payment for the rest of your life.
Boost Your Payout
There are 2 phases of annuities. First, there’s the accumulation phase, this is the phase where you’re paying into your annuity. Second, there’s the payout phase which is when you start receiving money from your annuity.
Wait To Enter the Payout Phase
By waiting to enter the payout phase, you’ll be able to boost the payout amount. Finally, if you don’t need the monthly payments, you can request your annuity is transferred to a beneficiary in the event of your death.
Enjoy the Benefits of Annuities
Now that you know more about the benefits of annuities, what benefit do you think will help you out the most? Are you thinking about assigning your annuity to a beneficiary? Or are you looking forward to having a set retirement income?
Whichever benefit excites you the most, remember that the sooner you start an annuity, the bigger your payout will be. Talk to a financial advisor today, and explore what annuities would best serve you. For more tips like the ones in this article, check out the rest of this site.