You are probably concerned about your retirement even if you’re still several decades away from it. After all, the recent past has proven that retirement funds can be wiped out within days by an unfavorable stock market. Fortunately, you can utilize an annuity instead of a traditional IRA or 401(k). You can get more information about annuities when you look at the following website: www.pacificnwagency.com.
What Is an Annuity?
Annuities are actually an insurance product. Therefore, you can only purchase them from insurance companies. When you invest in an annuity, you agree to make one more payment in order to receive a steady stream of income for a period of time. Unlike other retirement products, an annuity guarantees a steady stream of income. That’s why annuities are a very popular choice among conservative retirees.
Different Types of Annuities
You can purchase a fixed, variable, or indexed annuity. A fixed annuity pays out a guaranteed amount of money. As the name indicates, you will receive a fixed income. A variable annuity pays out a variable rate of return. While it will still have a guaranteed minimum amount, the actual amount depends on the performance of its underlying investments. Finally, an indexed annuity is considered a hybrid of both.
Variety of Annuity Features
Different annuities can have a variety of different features. For example, the annuity you choose may differ from others in the way you receive premiums, when you start receiving income, the length of time during which you receive income, and its tax status.
Are Annuities Right for You?
Whether or not an annuity is the right choice for you depends on your unique situation. Fortunately, you don’t have to make this decision on your own. Instead, you rely on your insurance agents to help you choose the best financial product.
In order to get in touch with a qualified insurance agent, go to the following website: www.pacificnwagency.com. Because there is a lot to consider when purchasing an annuity, such as taxes and estate planning, it makes sense to find out whether an annuity fits in with your long-term financial strategy before you purchase it.