An immediate annuity can protect your retirement savings and provide guaranteed income for the rest of your life.
These unique investment vehicles have flexible design options and provide real growth potential for your investment.
Is an immediate annuity right for you? Below we take a closer look to help you make informed financial investments.
Immediate vs Deferred Annuity
There are two main types of annuities, immediate and deferred.
An immediate annuity forms through a single, one-time premium payment, which fully loads your investment, making all the benefits of the annuity immediately available. You can begin taking income distributions right away or postpone until a future date.
A deferred annuity forms through a series of premium payments that allow you to build your investment up over time. The benefits of the annuity defer until the full accumulation of investment funds.
These two annuity types have the same benefits but serve individuals with different life circumstances. Immediate annuities serve individuals who can afford a large lump-sum investment or are looking to roll over another investment vehicle such as 401k or IRA. A deferred annuity benefits individuals who want to build up their retirement income overtime without breaking their monthly budget.
Benefits of Immediate Annuities
- Single, one-time premium payment
- Guaranteed income that can last the rest of your life
- Flexible design options to fit into any retirement plan
- Real growth potential for increased income throughout retirement
- Options for fixed or variable interest rates
Immediate Annuity Interest Rates
Are you looking to protect your retirement nest egg, grow your retirement income, or a little of both?
Annuities are growing in popularity due to the flexible options that allow you to choose your investment risk level. Some options fully protect your investment and provide a conservative guaranteed rate of growth. Other options carry more risk but have the potential for high yields.
Fixed-Rate Immediate Annuity – Fixed annuities provide a guaranteed rate of return on your investment. The interest rate is fixed and never changes. Your investment is protected from market exposure and cannot lose principle. Fixed-rate annuities may be the ideal low-risk retirement investment vehicle.
Variable-Rate Immediate Annuity – Variable annuities provide a variable rate of return based on market fluctuations. These investments carry risk but can provide significant growth during a healthy economy. Variable annuities can significantly help individuals who are behind on their retirement savings.
An annuity that is part of a qualified retirement plan has significant tax advantages that help you grow more income throughout retirement.
A qualified immediate annuity allows you to load your investment with pre-taxed funds. As a result, your investment grows and compounds faster and gives you more retirement income. You still pay taxes on your investment but not until you begin taking income distributions down the road.
A non-qualified immediate annuity is not associated with a formal retirement plan and therefore does not have additional tax advantages.
Finding The Best Carrier
Many insurance companies that sell immediate annuities. The challenge is finding the right one with the best options for your life situation.
Our independent agency helps you shop and compare all the top annuity companies side by side. We’ll help you find your best interest rate and the most convenient options that help you live a successful retirement.
We’ve helped thousands of individuals grow their retirement income. We’d love to help you too!
There’s no obligation when speaking with an agent. We provide both free advice and illustrations. And if you decide to move forward with your investment, our streamlined application process makes the whole process super simple. See what we can do for you.
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