Why annuities are good investments

Thursday, February 01, 2024 06:00 AM - Comment(s)

Why annuities are good investments

Annuities offer a wide range of benefits and features which can make them a good option for helping you reach your future financial goals.

As a nation, we're not ready to retire.1 Collectively, we are short by $4.13 trillion.2

Help meet your goals with the right product

Annuity Pros can tell you about the different kinds of annuities, including:

Variable | Fixed indexed | Immediate | Fixed

When you discuss your retirement goals with us, we can suggest an annuity — or a combination of annuities — that’s right for your needs.

Annuity Pros is aware of different annuity riders or features that can help create smart, tailored and more complete coverage to suit your goals.

Imagine the possibilities for growth

MAXIMIZE THE ADVANTAGES TODAY

Tax-Deferred Growth: Over time, annuities can accumulate with the advantage of tax-deferred growth. It lets you:

Delay paying taxes

Principal, interest and capital gains may accumulate tax free until you withdraw and take receipt of them; the benefit is that, when you withdraw during retirement, you're likely to be in a lower tax bracket.

Build value

By delaying taxes until withdrawal, your account can retain more value; by deferring taxes, you can use the power of compound interest to boost the base of your account with each passing year; over time, it can add up to more retirement wealth.

Similar to a 401(k), an annuity may have tax advantages

As a result, the government typically limits your access to withdrawals until after you're 59 1/2. Any earlier, and there's a 10% early withdrawal penalty.

Growth Potential

Some annuity options offer growth potential. Here's how:

You gain buying power
Some investments are beyond reach because minimum investment amounts are too high; annuities can help because you're in a larger group of investors.
You can skip fees or taxes
You may be able to exchange between investments without fees or tax consequences.
You can manage your investments yourself or use a money manager — it's your choice.

PROVIDE FOR THE FUTURE

Income, legacy and spousal opportunities:

Annuities are uniquely designed to be able to provide you with lifetime income options, legacy planning and spousal opportunities.

Lifetime income

Achieved through the use of annuitization at no cost or via a lifetime income benefit rider available for an additional cost.

Legacy

Most annuities have a return of premium standard death benefit (your beneficiary gets back what you put in at a minimum); however, you have the opportunity to purchase enhanced death benefit riders that could increase the amount left to loved ones.

Spousal opportunities

You're able to cover the life of your spouse on your annuity, either on a death benefit or a lifetime income benefit; please note that some carriers may charge a fee for these services.

PROTECT AND PLAN

Plan for what - and who - matters most!

ANNUITIES CAN ALSO PROVIDE DEATH BENEFITS TO A LOVED ONE

You can pass your assets to beneficiaries while avoiding the costly probate process. Married couples can also choose spousal protection.

Spousal protection offers security for both of you. With spousal protection, your Mr. or Mrs. is protected in the event that you pass away first. Your spouse then has the flexibility to choose:

Continuation - Continue the contract at the death benefit amount, or
Full payout - Take a lump-sum distribution

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

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