Help diversify your retirement strategy with an annuity

Thursday, April 04, 2024 09:49 AM - Comment(s)

Help diversify your retirement strategy with an annuity

Annuities are financial products that guarantee a steady stream of retirement income. They offer tax-deferred growth potential while you’re saving for retirement, and dependable income after you retire – in some cases, income for life.¹What is an annuity?

An annuity is simply a contract between you and an insurance company. You pay the insurance company one or more purchase payments (“premium”). In exchange, you get the benefits the insurance company guarantees through your annuity contract.

Accumulation potential

Some annuities have the potential to earn interest or credits based on the growth of an external index (we call this “indexed interest”). You can choose from one or more external indexes and crediting methods, depending on your financial goals. Other types of annuities offer growth potential through variable investment options.

Level of protection

Annuities can help protect the money you place in your contract (the “principal”). Some annuities protect all of your principal from market downturns, while others offer greater potential in exchange for some market risk, including the risk of losing principal.²

Tax-deferred growth

You don’t have to pay income taxes on the earnings in your contract until you take money out of your annuity. Tax deferral may help the money in your annuity compound over time, for even greater accumulation potential.

Retirement income

After a period of time specified by your contract, annuities provide guaranteed retirement income. Some annuities let you choose from a variety of income options – and some even offer the opportunity for income increases in retirement. These options may either be built in to the contract or optional and available for an additional cost.2

Learn the basics of annuities

Annuities can help address some common financial concerns, from helping you save for retirement and providing a level of protection for your retirement savings to helping address inflation and longevity.

Why consider an annuity?

Annuities are designed to complement other financial products as part of your overall retirement strategy. They offer important features and benefits that can help you accumulate for retirement, supplement your retirement income, and even help diversify your portfolio. (However, remember that diversification does not ensure a profit or protect against loss.) For additional help in considering whether an annuity is right for you, get in touch with Annuity Pros.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

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