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

There are several types of annuities that you should be aware of while trying to choose a vehicle for your retirement funds. Annuities can be immediate or deferred and they can provide fixed or variable returns. In this article, we’re discussing the differences between fixed, fixed-index, and variable annuities. Fixed and variable annuities can either be immediate or deferred. For more information on the difference between immediate and deferred annuities, you can visit our articles that explain more about these two categories of annuities by clicking the embedded links below. If you’re intere ..read more

Nearing retirement is an exciting time filled with new plans and possibilities. But before you decide on your vacation home, you need to figure out how you’re going to fund your golden years. With retirement comes freedom, but for most people, this also means a significant change in your income level. To thrive in retirement, it’s critical to manage your money wisely. For many individuals, one of the most effective and secure ways to do so is by including an annuity as part of their retirement strategy. To take advantage of these financial products, you need to understand the key differences b ..read more

Should you buy an annuity within a traditional IRA? That’s the topic of discussion in a recently published story by Tim Grant of the Pittsburgh Post-Gazette. In the article, AnnuityAdvantage Founder and CEO, Ken Nuss, is quoted extensively. Here are a few snippets: “...many financial advisers say it makes little sense to hold an annuity in a retirement account such as a traditional or Roth IRA because it would be similar to wearing a raincoat indoors. One of the main advantages of an annuity is that your money grows tax-deferred. However, any asset — stocks, bonds and annuities — that are held ..read more

The following are excerpts from a FOXBusiness article titled, “What Rising Interest Rates Mean for Annuities,” by Casey Dowd. “Annuities can serve to be an important leg in your retirement portfolio no matter what the current interest rates are. It is difficult to determine the perfect time to invest in an annuity, but with a projected hike in rates, it might be a good time to weigh the option. Ken Nuss, CEO of AnnuityAdvantage, discussed with FOX Business what you need to know about rising interest rates’ impact on annuities, and how to create a guaranteed lifetime income stream. Boomer: How ..read more