How does an Annuity work?
An Annuity is a product which provides either a monthly, quarterly, annual, or lump-sum amount of money during your retirement years. Money that is put into an annuity grows in the account tax-deferred until money is taken out of the account. This product is made to provide you with earnings unlike a savings account in which money is usually held for the “short-term” in many cases.
What benefits do Annuities offer?
A huge benefit of owning an annuity is not being taxed on a large amount of money kept in your account. There is also no “contribution limit” which means the amount of money you can put into your account is not limited.
Can I withdraw money an annuity at any time?
With an Annuity, you cannot withdraw money at any time because you may be penalized and it is important to remember that your withdrawals are taxable.
Are Fixed Annuities safe investments?
Fixed Annuities are one of the safest investment opportunities available. The main goal of a fixed annuity is to prevent any possible loss which is backed by licensed companies.