Annuities & Retirement Income
HELPING YOU TURN RETIREMENT SAVINGS INTO RETIREMENT INCOME
You’ve worked hard to save for retirement. The next question is just as important: How do you turn those savings into income you can depend on?
Understanding Your Annuity Options
Fixed Annuities
Fixed Indexed Annuities
Fixed Indexed Annuities
A fixed annuity generally provides a guaranteed interest rate for a specified period, subject to the terms of the insurance contract.
For people who value predictability, a fixed annuity may provide an alternative worth considering as part of a diversified retirement strategy.
Fixed Indexed Annuities
Fixed Indexed Annuities
Fixed Indexed Annuities
A fixed indexed annuity credits interest based in part on the performance of a market index, subject to the contract's participation rates, caps, spreads, or other limitations.
Your money isn't invested directly in the index. These products may provide an opportunity for interest growth while offering protection against direct market losses, subject to the insurer's guarantees and contract terms.
Immediate Annuities
Fixed Indexed Annuities
Immediate Annuities
An immediate annuity is designed primarily to create income. Typically, a lump sum is exchanged for a stream of payments that begins relatively soon after the contract is established.
Depending on the option selected, payments may continue for a certain number of years or for the annuitant's lifetime.
WHAT IS AN ANNUITY?
An annuity is a contract issued by an insurance company designed to help accumulate money and/or provide income, often during retirement.
Depending on the type of annuity you choose, it may provide features such as tax-deferred growth, guaranteed income options, or protection from certain market losses.
Annuities aren't right for everyone, which is why understanding the details—including fees, surrender periods, withdrawal provisions, guarantees, and tax considerations—is important before making a decision.
Why Consider an Annuity?
For some people, retirement planning isn't simply about accumulating the largest possible account balance. It's also about knowing where their income will come from each month.
An annuity may help address concerns such as:
- Creating an additional source of retirement income
- Providing income that can last for life, depending on the contract
- Growing assets on a tax-deferred basis
- Reducing exposure to certain market risks with some annuity types
- Supplementing Social Security, pensions, and other retirement assets
The right approach depends on your age, financial situation, income needs, time horizon, risk tolerance, and other retirement resources.
The Question Isn't “Are Annuities Good or Bad?”
It's...
“Does an annuity make sense for me?”
That's a much better conversation.
An annuity is a financial product with advantages, limitations, costs, and trade-offs. What works well for one person's retirement strategy may not make sense for another.
At Joe Ann Steele Financial Center, we believe you should understand what you're buying, why you're buying it, what it costs, and how it fits into the rest of your financial picture.
That's the straightforward approach Joe Ann believed in.
Learn More
An annuity can provide predictable retirement income and financial stability, helping you feel more confident about the years ahead.
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