What is an Annuity?
An Annuity is a good investment option for individuals that reduces risk to help balance an overall investment portfolio by bringing stability and security to the portfolio. Your annuity can guarantee financial independence as you age, or a monetary legacy to leave behind for your loved ones. An annuity can help you continue living comfortably well into old age.
The goal of an annuity is to provide a steady stream of income, typically during retirement. Funds accrue on a tax-deferred basis. Annuities can be purchased with after tax dollars or pre taxed dollars such as IRA rollovers and retirement funds. Many aspects of an annuity can be tailored to the specific needs of the buyer.
Unlike other investment plans, there is no limit to how much you can invest into annuities. Your funds will steadily grow with a tax-deferred status, and you pay your regular tax income rate on only your earnings upon withdrawal.