Annuity helps you Regain Financial Stability after Retirement
Annuity helps you Regain Financial Stability after Retirement
Do you have plans to retire? Are you just a month away from your retirement? If so, you must have done enough researches on your retirement plans that can keep your postretirement finances escalating. Well, this discussion is obviously not digressing towards pensions for they are no more productive as they used to be in earlier times. It's none other than the option of annuity that's making plenty of retirees wealthier in no time. This rewarding retirement policy assures to provide you a regular monthly income for your lifetime. There are various plans under annuities and you can get in touch with any of the online annuity professionals to know what's best for you.
As far as the concept of annuity goes, it's just a contract drawn by an insurance company that decides to provide you a regular monthly payment till the last day you breathe. There are variations regarding the annuity monthly payouts. For instance, the payments can be quarterly, annual or semiannual. In fact, annuities can be drawn for two or more persons. In case of a life insurance policy, the beneficiary is provided a certain income on the death of the applicant. However, annuities assure a steady income for the rest of your life.
You can buy annuity in installments. In fact, you can enjoy a good lot of benefits if you can start at the age of sixty five. What's best about annuities is that you can take your payments in lump sum. Well, if you wish, you can choose schemes that can let you draw payments on a monthly basis set for a particular time period.
Annuities are also categorized into individual, joint and group basis. However, individual annuity is best for the retired individuals and is taken exclusively for retirement purposes. For all married couples, the Joint and Survivor annuity is a good option. Here, both the couples can get insured, and the spouse enjoys the guarantee of receiving payments even after her husband's death.
Nowadays, retirees are also fetching ample benefits from tax-deferred annuity. There are many who have a misconception regarding the meaning of this retirement policy. According to the term, a tax deferred annuity is not free of tax but it's simply tax deferred where the individuals are permitted to save a lot for their retirement days with the pre-tax payments. Usually, these contributions are taken from salaries of employees that actually reduce their present taxable income.
A tax deferred annuity is a profitable long-term investment plan. Since the assets keep increasing over time, a steady income is finally ensured. Taxes will be levied on the funds only when they are withdrawn. If the money is taken out of the plans before 60, you might have to pay federal income tax penalties as well as normal taxes. Tax deferred annuities can be divided into fixed tax deferred annuities and variable tax deferred annuities. It's always advisable to go for annuities by talking to an agent who can help you provide guidelines regarding best annuity schemes.
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