None of the information presented on is a recommendation to purchase an annuity, and you should not consider it to be advice or a recommendation.Īnnuity contract features described may not be current and many annuity contracts have state-specific versions and may not be available in all states.
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The information available on or through is intended only to be a comparison tool, and you should only consider it to be a supplement to the full information provided by the issuing insurance company, or your financial adviser, if applicable. My Annuity Store, Inc., is a licensed fixed annuity producer and does not advise clients on the purchase of non-fixed annuity products. Guarantees are subject to the claims-paying ability of the insurer. However, it’s crucial to ensure that the online marketplace is reputable and trustworthy before making any financial decisions.Īnnuities are distributed by My Annuity Store, Inc. These platforms allow you to compare different annuity products, access customer reviews, and get quotes from multiple providers. Online annuity marketplaces have emerged as a convenient option for purchasing annuities. They provide personalized advice and recommendations tailored to your specific needs. These professionals have in-depth knowledge of different annuity products in the market and can help you find the one that aligns with your retirement goals and risk tolerance.
Independent Financial Advisors. Working with an independent financial advisor can be beneficial when buying annuities.Additionally, many financial institutions, such as banks and credit unions, also offer annuities as part of their investment offerings. They offer a range of products and can guide you through the selection process. Insurance Companies and Financial Institutions. Insurance companies are the primary providers of annuities.Here are some common options to consider: There are various avenues through which you can buy annuities. Now that you understand the benefits of annuities, let’s discuss how and where you can purchase one. This ensures that your contributions and any accumulated earnings are not lost and can be passed on to your heirs. If you pass away before receiving the full value of your annuity, a death benefit can be paid out to your loved ones. Death Benefit for BeneficiariesĪnnuities can provide a death benefit to your beneficiaries. This flexibility enables you to potentially earn higher returns by taking advantage of market opportunities. Variable annuities, for example, allow you to allocate your funds among different investment options.
Investment Control and Flexibilityĭepending on the type of annuity you choose, you may have control over how your contributions are invested. However, it’s important to note that withdrawals from annuities are subject to ordinary income tax. This tax deferral allows your investment to potentially grow faster compared to taxable investments. During the accumulation phase, your contributions grow on a tax-deferred basis, meaning you don’t pay taxes on the earnings until you start withdrawing the money. Tax AdvantagesĪnnuities offer tax advantages that can be beneficial for retirement planning. This stability can help alleviate concerns about outliving your savings and provide peace of mind in retirement. By opting for a lifetime income option, you can rest assured that you’ll have a consistent source of income to cover your living expenses, regardless of how long you live. One of the primary advantages of annuities is their ability to provide a stable income stream during retirement. Here are some compelling reasons to buy an annuity: Retirement Income Stability It’s important to understand the tax implications of each payout option, as they can vary based on the type of annuity you choose.Īnnuities offer several benefits that make them worth considering for retirement planning. You can choose a fixed payment amount for a specific duration, opt for variable payments tied to market performance, or even select a lifetime income option that guarantees payments for as long as you live. Once you reach the distribution phase, you have several options for receiving payments from your annuity. One of the advantages of annuities is their tax-deferred status, meaning you won’t owe taxes on the earnings until you start withdrawing the money.ĭistribution Phase: Payout Options and Tax Implications The insurance company invests these funds, allowing your money to grow over time. Annuity contracts consist of two phases:Īccumulation Phase: Contributions, Earnings, and Tax Considerationsĭuring the accumulation phase, you contribute funds to your annuity, which can be a lump sum or regular payments. To better understand annuities, let’s delve into their mechanics.
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