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Transform your retirement dreams into reality by using annuities for retirement income.
Annuities are financial products offered by insurance companies that provide a regular stream of income over a specified period or for the lifetime of the annuitant. They are often used as a means of accumulating and or distributing funds for retirement.
Here are some key points about annuities:
Annuities are typically structured as contracts between an individual, known as the annuitant, and an insurance company. The annuitant makes a lump sum payment or a series of payments to the insurance company, which is then invested and grows over time.
During the accumulation phase, the money invested in the annuity grows on a tax-deferred basis. This means that the earnings on the investment are not subject to immediate income taxes, allowing the funds to potentially grow more quickly.
The annuity enters the distribution phase when the annuitant decides to start receiving regular payments. The payments can be made for a fixed period, such as 10 or 20 years, or the rest of the annuitant's life. An annuity can offer a continuous, dependable monthly income stream throughout your lifetime.
With annuities, you can choose from various options that align with your unique priorities. You can focus on accumulation or focus on retirement income distribution depending on your savings objectives.
By working alongside one of our trusted annuity brokers, you can embrace a future filled with financial assurance and peace of mind and discover if an annuity is a smart choice for your long-term financial security.
These annuities provide a fixed interest rate for a specified period, ensuring a predictable income stream. They offer stability and are an ideal choice for those seeking a conservative approach to retirement planning.
Variable annuities allow you to invest in a range of underlying investment options, such as mutual funds. The income generated from these annuities fluctuates based on the performance of the underlying investments.
Indexed annuities offer a combination of fixed and variable features. They provide the opportunity to earn returns based on the performance of a specific market index while also providing downside protection.
Provides a steady, reliable income stream that begins within a year and can last for as long as you live.
Provides a steady, reliable income that begins on a future date and can last for as long as you live. Since the income begins later it may provide a higher income amount than an immediate annuity.
Our Custom Annuity Policy Review report examines rider fees and internal expenses associated with fixed annuities, indexed annuities, and variable annuities. This report looks at your current annuity to see if it still meets your needs, or if there is something that might be a better fit for your retirement planning.
Annuities are often used as a retirement income tool. They provide a steady and predictable stream of income during retirement, helping individuals cover their living expenses and maintain their lifestyle.
During the accumulation phase, the funds invested in an annuity grow on a tax-deferred basis. This means that the earnings are not subject to immediate income taxes. The tax liability is deferred until the funds are withdrawn, allowing the investment to potentially grow more quickly.
Depending on the type of annuity, individuals may have a range of investment options to choose from. Fixed annuities, for example, allow the annuitant to receive a fixed rate of return. This flexibility can allow you to save and earn interest based on your level of risk tolerance.
Annuities can offer a guaranteed income stream for the rest of an individual's life, regardless of how long they live. This can help mitigate the risk of outliving one's savings and provide financial security in retirement.
Many annuities include a death benefit that ensures the annuitant's beneficiaries will receive a payout if the annuitant passes away before the full value of the annuity is paid out. This can be a valuable feature for individuals who want to leave a financial legacy for their loved ones.
In some jurisdictions, annuities may offer protection from creditors. This means that the funds held in an annuity may be shielded from legal claims or bankruptcy proceedings, providing an extra layer of asset protection.
It's important to note that annuities also have potential drawbacks and associated costs, such as fees, surrender charges, and limited liquidity. It's crucial to carefully evaluate the terms and conditions of an annuity and consider how it aligns with your financial goals and circumstances before making a decision. Consulting with a financial advisor can provide personalized guidance based on your specific needs.
Florida has specific laws in place to protect the proceeds of certain types of annuities from creditors. The Florida Statutes Sections 222.14 and 222.21 provide exemptions for annuities from the claims of creditors.
Section 222.14 states that the cash surrender value of an annuity contract that is payable to a participant, beneficiary, or owner is exempt from the claims of creditors of the participant, beneficiary, or owner, subject to certain limitations.
Section 222.21 provides an exemption for annuity contracts issued or purchased by an individual, including individual retirement annuities and individual retirement accounts (IRAs). These annuities are generally exempt from the claims of creditors, with some limitations and exceptions.
It's important to note that while annuities may have some creditor protection in Florida, there are exceptions and limitations under the law. The specific circumstances of your situation and the type of annuity involved may affect the level of protection. Therefore, it's advisable to consult with a knowledgeable financial advisor or annuity broker who can provide guidance based on your individual circumstances.
Yes, you can contribute to an annuity even if you have other retirement accounts. Annuities are not subject to the same contribution limits as 401(k)s or IRAs. However, it's important to consider the tax implications and potential overlap with your existing retirement savings strategy.
Yes, many annuities offer joint and survivor payout options. This means that the annuity payments will continue to a surviving spouse or another designated individual after the annuity owner passes away. Joint payout options provide added security for couples who want to ensure ongoing income for the surviving spouse. Get Your Income Rider Calculator Quote Here.
Yes, it is possible to exchange one annuity for another through a process called a 1035 exchange or a tax-free exchange. This allows you to transfer the funds from one annuity to another without incurring immediate tax liabilities. However, specific rules and requirements must be followed to qualify for a tax-free exchange
The tax treatment of annuities depends on the type of annuity and how the funds are withdrawn. In general, earnings on annuities grow tax-deferred until you start receiving payments. When you receive payments, a portion may be considered taxable income, while a portion may be considered a return of your original investment and not subject to income tax.
Annuities are often backed by the financial strength and claims-paying ability of the insurance company. In the event that the insurance company becomes insolvent, there are typically state guaranty associations that may provide a limited level of protection to annuity owners, up to certain statutory limits.
he treatment of an annuity upon your death depends on the specific terms of the annuity contract. In some cases, if you have a beneficiary designated, they may receive the remaining value or continue to receive payments. However, if you do not have a beneficiary or have chosen a specific payout option, the remaining value may be retained by the insurance company.
Selecting an annuity that will meet your needs is not straightforward and requires serious thought and analysis. Contact us to discuss different options that may work for you,
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