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What is an Annuity?
An Annuity is a unique financial vehicle designed to help people accumulate money for their retirement and/or turn a lump sum of money into a guaranteed stream of income payments. An annuity contract is purchased from an insurance company.
Deferred Annuities offer the advantage of tax deferral and are used to accumulate money for retirement. There are two types of deferred annuities: fixed and variable.
Fixed deferred annuities pay a fixed rate of interest. Variable annuities usually offer investment divisions such as stocks, bonds, money market accounts, and specialty investment divisions and fluctuate in value with market conditions. There are fees and expenses associated with variable annuities.
An Income Annuity is used to generate a stream of income payments that are guaranteed to last for as long as you need those payments to last - even for the rest of your life. Income annuities can be used by a business to pay pension benefits to retired employees.
Annuities are also often used for special savings plans that are provided by some employers, such as:
- Tax Sheltered Annuities (TSAs), (salary reduction plans for employees of public schools and non-profit organizations)
- Simplified Employee Pensions (SEPS)
- Providing for a spouse as in the case of a Joint and Survivor Annuity
Annuity Considerations:
Do you have money to invest as a result of any of the following circumstances?
- A lump sum distribution from a pension plan?
- An inheritance?
- The sale of a home or business?
- A CD or money market account that is no longer generating competitive yields?
- Extra liquidity now that your children are grown?
Why are more consumers are using annuities to guarantee retirement income?
It's wonderful that people are living longer lives these days. Some individuals can now spend 20 or more years in retirement, so you need to be sure that your financial resources can last as long as you do. Most likely, your retirement income is coming from three main sources: Social Security, your pension, and your personal savings - so making the most of your own investments is essential!
Please contact us for our Understanding The Value of Annuities Brochure. |
Due to various regulations and requirements concerning the dissemination of information regarding investment products and services to members of the investing public, we are currently required to limit access of our client investment pages to individuals residing in states where we are currently securities registered:
Pennsylvania (PA) and New Jersey (NJ).
Securities and Investment Advisory Services Offered Through
H. Beck, Inc., Member NASD, SIPC
Certain employees of Benefit Consultants, Inc. are registered representatives of H. Beck, Inc.,
which is unaffiliated with Benefit Consultants, Inc. 800-666-5961
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