Unlike a CD, your principal earns interest, your interest earns interest and the money you would have paid in tax earns interest.
Retirement, just like many of the other stages of our lives, requires some careful planning and a lot of decision making with regards to money. Ensuring that you will be able to retire comfortably and maintain the type of lifestyle you had before you stopped working is possible when you know how to plan. For some, an annuity might be the retirement planning solution they’ve been looking for.
With an annuity, an individual deposits a lump sum of money that will then be invested on their behalf. Later, such as during retirement when they need the steady influx of money, the annuitant will receive payments in regular intervals. Depending on whether or not you choose a fixed or variable annuity, the amount of money you receive could be the same each time or vary according to the success of the investments made. This is a personal choice that only you can make based on your own budgetary needs.
Either way, an annuity provides you with peace of mind because you know you will continue to receive money at regular intervals, just as you would have if you were still working. For the purpose of being able to still budget your day-to-day living expenses, an annuity can offer all of the stability you will need.
An annuity is a great way to save and earn money for retirement, without having to pay tax on the investment dividends. In any type of annuity whether it's a fixed or variable annuity your gains will grow tax deferred throughout the accumulation period of the annuity. For many, this is a major reason they choose an annuity as their retirement savings plan of choice.
Don’t leave your retirement years to chance. Be sure to take the time now to research your options, including the purchase of an annuity for you or your spouse, and to learn more about this important stage of financial planning.
Contact licensed representatives if you have specific questions or you want to learn more about the ins and outs of owning an annuity or to get free annuity quote. We specialize in more than just term life insurance.