What is an Annuity?

An annuity is one method that many use to save money for retirement and other needs. Though there are many different types of annuities, they all essentially allow the investor to save money on a tax-deferred basis.

Not all annuities are created equal, so let’s learn more about a variable annuity…

What is a Variable Annuity?

A variable annuity can be a great savings tool for investors in many cases. By investing in a variable annuity you are investing in a mutual fund, bond fund, etc. with the hopes of increasing the value of the annuity. However, the buyer (you) assumes the risk according to the market, which can make this option seem less desirable. However, if you have a long-term investment horizon, a variable annuity could be a better way to invest.

Why Invest in a Variable Annuity?

Maxed-Out 401k:

Someone who has maxed out their 401k and wants tax-deferred growth. For someone who earns a lot of income and is worried about taxes, a low-cost variable annuity could work out well as they won’t have to pay taxes until they take that money out.

Adding a Guaranteed Income Rider:

For someone who is a few years into retirement, adding a guaranteed income rider will give you income for life. The con here is that if you want to grow this account and add more money into it, it will cost more. However, over time you would have a nice stream of guaranteed income.

What Do You Need to Know About Annuities and Retirement Planning?

Learn more about how to start planning for retirement or how to improve your current financial plan with Kevin Walker of Great Lakes Properties and Investments.

Do You Have everything in place for a proper retirement plan? Not Sure?

 Learn more about how to start planning for retirement or how to improve your current financial plan with Kevin Walker of Great Lakes Properties and Investments.