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Sharing the Love About Annuities on Valentine’s Day

As you get ready to share Valentine’s Day with someone special, Annuity Alliance wanted to share some reasons why you may love annuities especially when they can become a guaranteed income stream during your retirement years.

Reason #1 – Guaranteed Lifetime Income

Throughout the Annuity Alliance website, one major benefit of annuity involves being able to provide this income to the point where you may never outlive the payouts. Of course, this depends on the insurance carrier that you purchased the annuity from and their ability to pay that income stream.

Reason #2 – Stability

For most retirement income sources tied to the stock market, you could see fluctuation in the market causing your accounts to potentially lose money during economic downturns but also grow faster during profitable years. Everyone learned about the ups and downs during the 2008 stock market plunge and also during 2020’s economic impact based on the coronavirus. You can never lose your original premium in your annuity even in down years.

Reason #3 – Flexibility

Insurance carriers have adjusted with the times to create multiple different types of annuity products. For short-term gains from three to five years, you can choose a Multi-Year Guaranteed Annuity (MYGA) or a Single Premium Immediate Annuity (SPIA). You also have options for longer annuities, like a Fixed Indexed Annuity (FIA) or Fixed Annuity, that have longer terms (up to 10 years for most products). Based on the length of the term, you can have a higher interest rate for the longer terms, but you also may have to pay a surrender charge if you need to make a withdrawal during the term.

Reason #4 – Tax Benefits

With an annuity, one main benefit involves tax-free growth until you start making withdrawals. Basically, your annuity can grow without you paying taxes over the term of the annuity contract. Deposits into an annuity are not tax-deductible.

Reason #5 – Leaving a Legacy to Beneficiaries

An annuity allows you to grow money over time to pass onto your chosen beneficiaries. Sometimes, estate assets can be tied up in probate court which causes the estate funds to cover the expenses as well as delay the disbursement of those assets. Annuities are not subject to probate and the owner can control how annuity funds are distributed to beneficiaries.

That’s just a few reasons why Annuity Alliance loves to help clients by connecting them to a licensed professional who can discuss annuity products and find options that align with their retirement strategy. Looking to talk to a financial professional about your situation? Contact Annuity Alliance today to get started.