With pensions a thing of the past for many Mainers, annuities have become more popular. Annuities have been around since Roman times, so they are not a new concept. Though expensive, their benefits are worth it to a growing population.
What is an annuity? - An annuity is an insurance instrument that can pay a stream of income, like a personal pension. It may used as part of one's retirement strategy.
Annuity types- Two types of annuities are Deferred and Immediate. Typically and Immediate begins payouts immediately and with a deferred annuity one choices to defer because you want to take advantage of an accumulation period. Immediate annuity
Advantages- 1.) deposits, investments, placed in an annuity grow tax deferred. while money is in the annuity you don't pay tax on earnings. 2.) Life-time payment. Insurance companies guarantee a certain payout or percentage for life. 3.) Many deferred annuities allow you to invest in the stock market. And they offer - for additional costs- guarantees that you will not loose your investment through stock market volatility.
Disadvantages - 1.) Cost- annuities can have cost that are double a standard mutual-fund. 2.) Locked-up assets- money that you deposit into a deferred annuity generally has a surrender charge for the first eight or so years.
Are annuities right for you? Only you can make that decision.
Citations:
Definition:
Origin of annuities:
Marion Syversen, MBA
NorumbegaFinancial
207.862.2952
Marion@NorumbegaFinancial.com
Check out our website that includes weekly streaming videos
WWW.NorumbegaFinancial.com
The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer.
Email management, archiving & monitoring technology powered by Smarsh, Inc.
Disclosure:
Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Wall Street Financial Group, Inc. and Norumbega Financial are separate entities, independently owned and operated. Variable annuities may be subject to investment risk, including the possible loss of principal.
Add your Comments