Annuities
Annuities
Annuities can be a big part of retirement strategy. An annuity is designed to accept and grow funds and then, upon annuitization, pay out a stream of payments to the individual.
Types of Annuities
- Fixed Annuities
- Deferred Annuities
- Variable Annuities
- Indexed Annuities
- Income Annuities
- Single Premium Immediate Annuity
Benefits of Annuities
- Receive tax-deferred growth and compounding within the annuity contract
- Guaranteed rates of return on investment
- Guaranteed lifetime payments if you annuitize
Withdraws are subject to ordinary income tax and if taken prior to age 59 ½ may be subject to a 10% federal tax penalty.