After years of work, many people reach retirement with a new question: how do I make what I have set aside last? An annuity is one tool that can help. It is a contract with an insurance company that can turn a portion of your retirement funds into a stream of income, either now or at a later date. At Legacy Ridge Financial, we help you understand how annuities work and whether one belongs in your plan.
A fixed annuity credits interest at a rate set by the insurance company for a stated period, which can appeal to people who value predictability. A fixed indexed annuity credits interest based in part on the performance of a market index, within limits set by the contract, while helping protect against losses when the index declines. An immediate annuity begins paying income soon after purchase, while a deferred annuity gives your money time to grow before payments start. Each type has its own features, fees, and surrender periods, so the details matter.
An annuity works best alongside the rest of your plan. Many clients review their Medicare coverage and their life insurance at the same time, so every piece works together. As an independent agency, we can compare products from multiple insurance companies, including Corebridge Financial, and walk you through the differences in plain language.
Annuities are not the right fit for everyone. They may be worth exploring if you:
Because annuities are long-term commitments, we take time to explain surrender charges, payout options, and how access to your money works before you make a decision. We also encourage clients to talk with a tax professional about how an annuity fits their overall situation.
If you are planning for retirement and want to understand your income options, our High Point office is here to help. Contact us or call 336-259-5900 to set up a time to talk with a local advisor.
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