People plan for their eventual retirement to ensure they can enjoy their golden years in comfort and security. Annuities are a popular component of many retirement strategies, particularly with the increasing life expectancy in the U.S. in recent decades. However,... Read more The post Are Annuities Safe? Understanding the Risks and How to Manage Them appeared first on AnnuityAdvantage ..read more

Comparing annuity rates is no easy task. There are numerous factors that go into determining annuity rates, most of which depend on the type of annuity you choose. However, there are other factors that influence your annuity rate, such as... Read more The post Comparing Annuity Rates appeared first on AnnuityAdvantage ..read more

Annuities are a financial vehicle that has long been very popular for retirement planning, and people tend to have a lot of questions about how they work. More specifically, those looking into annuities as a retirement income option often wonder when an annuity begins to make payments. While there is not one all encompassing answer, as the annuitization process varies from one annuity type to another, in this piece, we’ll zero in on immediate annuities, paying particular attention to when they begin making payouts. Though the answer is implied in their name, there are still subtleties worth go ..read more

Even if you’re lucky enough to love your work, the fact is, you’re going to have to retire eventually. This is a major life event on par with getting married or having children, and it’s similarly something that you need to carefully plan for. Annuities are just one of many ways of doing this, and there are many complexities and subtleties to annuities. Today, we’re going to walk through the differences between two of the major types of annuities, qualified and nonqualified annuities, to help you understand which you should consider for your retirement. What is An Annuity and How Does it Work ..read more

It would be more accurate to separate immediate and deferred annuities into categories rather than types, since all different types of annuities can be classified as either immediate or deferred. Both immediate and deferred annuities can be fixed or variable and they offer various pros and cons depending on your retirement goals and income needs. The primary difference between these annuities is that immediate annuities don’t have an accumulation phase. An accumulation phase is a period of time that lapses between when the owner purchases the annuity, and when they start receiving payouts. Def ..read more

Planning for retirement is an involved process that can be stressful. Annuities, which are a popular way of planning for your retirement, are often misunderstood. Though not complicated in practice, there is a lot of nuance when it comes to setting up an annuity, hence the misunderstandings. In this article, we aim to set the record straight and give you what you need to know in order to decide if an annuity is the right move to make for your golden years. Annuity Myths – And Truths Annuities are structured as a contract between you and an insurance company. To fund the annuity, you can choose ..read more

Asking about the difference between life insurance and annuities is common. The most common difference between life insurance and an annuity is that life insurance helps provide financial security to your loved ones if you pass away. Annuities provide either tax-deferred growth or a guaranteed stream of income in retirement. Life insurance and annuities are excellent options to consider for your retirement strategy. In this article, we’ll detail why. What Does Life Insurance Do? Life insurance’s focal point is to guarantee financial security for loved ones after someone passes away. Life insur ..read more

Nearing or at retirement age and want a strategy for retirement income? Income annuities might be the right answer for you. But how can you tell for sure? In this article, we’re discussing what income annuities are and how they work. Income annuities let you convert portions of your retirement savings into guaranteed income streams. You can purchase an annuity with a lump-sum premium or through flexible payments over time. In return for these premiums, you will receive payouts at agreed-upon intervals (monthly, quarterly, semi-annually, or annually). If you’re wondering whether income annuitie ..read more

Annuities can offer powerful tax benefits to those planning for, or entering retirement. Unlike money market accounts, savings accounts, certificate of deposit (CDs), and most bonds, annuities carry the potential to create non-taxable income. For example, interest earned in a deferred annuity is not taxed until the annuitant withdrawals from the annuity. This accelerates savings growth because the interest compounds without being taxed. However, understanding the full scope of annuity taxation is critical to choosing the annuity product that makes the most sense for you. In this article, you’l ..read more

Deferred income annuities are types of deferred annuities that guarantee lifetime monthly incomes starting at a future date specified in their contracts. The chief purpose of a longevity annuity is to efficiently protect a portion of your assets that are dedicated to providing income later in life (typically at ages 70-85). One of the key benefits of a deferred income annuity comes from the specified lifetime income the annuity provides. You also know the exact date on which you will begin to receive income payments. Longevity annuity payments can either be based on a single life or on a joint ..read more