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Annuities Explained: Fixed Annuities
Once again, we welcome you back to our series about the different options you have when choosing an annuity. As we’ve explained before, an annuity is a form of financial planning for your future, that guarantees you income one you have retired. Once you’re in the position to start thinking about planning for retirement, it’s important that you educate yourself on the different investments you make, so you don’t make the wrong one, or worse, a bad investment. You can always talk to the financial planners at Income For Life, but until you do, here is some information we want to share with you about fixed annuities.
- Just like the other types of annuities, it is a contract that you make with an insurance company.
- With a fixed annuity, the insurance company has an obligation to make payments to you for the duration of your contract.
- This type of annuity is popular because it provides a steady income for life.
- Taking your payments before you turn 59 will result in an additional tax from the federal government. Otherwise, this type of annuity goes untaxed till after age 59 ½.
- The Tax deferral will allow your assets to grow faster.
If a fixed annuity sounds like the right financial plan for your retirement, then consider talking to a financial planner about this options. Ask them about the pro’s and con’s of a fixed annuity, as well as compare them to other types of annuities, as well as other types of retirement plans. Planning for your retirement can be stressful and confusing so working with the financial management experts at Income For Life would serve you well. Reduce the confusion and stress of retirement planning, and contact us today.