An annuity can provide a stream of income to help meet your financial goals and ensure that you have a steady source of income during retirement. Here are some of the key benefits of annuities:
Guaranteed income: Annuities provide a guaranteed stream of income that can last for a specified period of time or for the rest of your life.
Tax-deferred growth: The growth of your annuity is tax-deferred, which means that you won’t pay taxes on the growth until you start receiving payments.
Death benefit: Many annuities include a death benefit that pays out to your beneficiaries if you pass away before the end of the contract.
Diversification: Annuities can be an effective tool for diversifying your investment portfolio and spreading out your risk.
Flexibility: There are many different types of annuities available, each with its own unique features and benefits. You can choose an annuity that meets your specific financial needs and goals.
It’s important to keep in mind that annuities are complex financial products, so there are also risks to each kind of annuity. For example, most are not liquid or easily converted to cash in a short time period. You should always carefully consider your investment goals, risk tolerance, fees being paid and overall financial situation before making a decision. It may be a good idea to speak with a financial advisor or other professional before investing in an annuity.
