Every working individual is bound to make his/her retirement plans right from the time when he/she will be entering into the working sector. There are some retirees who start making retirement plans a couple of years before quitting work. However, those who are wiser and smarter would always prefer to start researching a bit earlier on such policies so that they don’t fall prey to financial turmoil during their retirement days. So, why don’t you welcome annuities in your life after retirement?
Currently, investors consider annuities to be the most lucrative plans that are designed to provide monetary strength to retirees. Well, there are many who are still unaware of the annuity plans as well as their benefits. So, here are some crucial facts about deferred annuities:
- If you are willing to take up a deferred annuity plan, make sure that you get in touch with an insurance agency and thereafter fix a meeting with an insurance agent. You need to draw a contract with an insurance agency for initiating an annuity policy. It’s better not to depend on financial advisors for such plans.
- There are several annuities that provide tax deferrals on your investment earnings. However, the after-tax funds can always be deposited into a deferred annuity. The money which the annuitant starts withdrawing is completely free of taxes.
- Deferred annuities have an accumulation phase. During this phase, the annuitant can keep depositing regular payments to one’s account. With a variable annuity on the other hand, one is allowed to expand investments in stocks as well as fixed interests. This can certainly help investors strengthen their finances.
- The distribution phase of deferred annuity allows the annuitant to make way to a stream of guaranteed income just like pension. In fact, an annuitant is given an opportunity to choose a lifetime income option where he can keep receiving payments till he dies. However, this option does not allow the annuitant to transfer his income to a beneficiary.
One of the greatest advantages of deferred annuities is that they give annuitants death benefits which are however not provided to investors for mutual funds, stocks and bonds. Even if there is an economic downturn in the market, the beneficiaries will keep enjoying the death benefits.
Well, the most important thing prior to signing the contract with an insurance company is to get annuity quotes. There are several websites available that provide annuity quote tables from where you can get the latest quotes offered to investors. Moreover, it’s better to compare annuity rates offered by different companies. This will help you form an idea regarding the current market conditions in respect to deferred annuity plans. If you wish, you can always talk to financial advisors online and accordingly proceed for a bright future.
The author here throws emphasis on annuity plans and explains how profitable they can be for retirees and investors. Those willing to go for deferred annuities must get in touch with an insurance agent.