IMOR Financial - Important Things to Know about Annuities During Annuity Awareness Month

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Important Things to Know about Annuities During Annuity Awareness Month

Some consumers may not be familiar with the elementary structure of an annuity. Purchasing an annuity is an investment in the future. Annuities can provide protection and build generational wealth and secure financial stability. 

Today, all of us face a difficult challenge when preparing for retirement. We are living longer, working later in life, and have to take on the share of our own planning efforts. Annuities are long-term contracts, tax deferred and designed for retirement. Annuities can help play a crucial role in helping individuals prepare successfully for their retirement years. 

According to a recent report from LIMRA Secure Retirement Institute, 73% of annuity owners are confident about their retirement readiness compared to just 64% of those who don’t own an annuity. 

What are the 3 types of annuities?

There are three types of annuities:

  • Fixed annuities provide a fixed rate of return based on terms of the contract. Annuity contract holders will receive a fixed income in retirement.
  • Variable annuities allow you to control how the money is invested. The payout will change with the performance of the investment.
  • Indexed annuities money is invested in a stock market index i.e. Standard and Poor’s 500. Payments are based on the performance in the annuity.

With employers having fewer employer sponsored retirement plans available, you may be looking for strategies to help grow and protect your hard earned money to help fund the retirement you want. Annuities may provide an opportunity for growth and protection that can last a lifetime. One of the biggest in retirement is outliving your money. We can’t predict how many years of retirement we have and how long the need for income will last. You can grow and protect your retirement savings to help cover basic monthly expenses, for example, mortgage, rent, or utilities so you have the peace of mind and freedom to live out your retirement years.

In retirement, people’s goals are to never have to worry about outliving their money, protecting what they have to grow their money and make a livable income no matter what the economy is doing. The cost of living, and the uncertainty and rising interest rates have left many people in the “red” of retirement wondering where to put their money without endangering their dreams of retiring comfortably.

What are the benefits of annuities?

Annuities can help you achieve those goals. They can lock in and secure a steady income stream that will pay you no matter how long you live. Annuities have big benefits:

  • Principal protection no matter what is going on in the economy. Your initial investment in an annuity is 100% protected; it will not lose value. When you purchase an annuity you’re looking for either a growable income, a steady income, or a little of both.
  • Annuities have tax-deferred growth without taxation. If you make a commitment to letting your interest grow inside the contract, you may not pay taxes on that interest. You pay taxes on the withdrawal of your money and that is something you can control
  • Security when you purchase an annuity. You are doing so from an insurance company. The income you receive is paid out by the insurance company. The company’s claims paying ability is given a rating and that is what gives the annuity it’s security
  • Lifetime income could be what you are looking for. With a single investment you may ensure a steady stream of income every month for the rest of your life.

If you would like to learn more about annuities and the benefits of having one let me know and contact me at This email address is being protected from spambots. You need JavaScript enabled to view it. or call at 717-790-2171.


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