To live life to its fullest, you need to be prepared. Today, many of us will live well into and beyond our 80s, and creating a plan to meet your future financial needs will help you prepare for this longer life expectancy. Annuities can help you meet this financial need.
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Fulfilling your financial needs
Adding an annuity to your plan may help you overcome today’s challenges, including low interest rates, market downturns, rising health care expenses and longer life expectancies. An annuity is a contract between you and your insurance company. It can provide immediate income, or it can grow until you need income at a later time. Annuities are designed to turn the dollars you invest into an income stream you cannot outlive.
The value of an annuity
If you’re already contributing the maximum to other retirement plans, like an IRA or 401(k), an annuity is an attractive retirement planning option that grows tax-deferred. Annuities can also provide a current source of income before or during retirement. Annuities can help meet:
Annuities offer you options
A variety of annuities can help you achieve your financial goals.
- An index annuity is designed to provide you with the potential for growth without the risks of being invested in the stock market and your account value is protected from market loss. Earnings in annuities grow tax-deferred, which means you won’t pay taxes on earnings until you withdraw your money. You benefit from this tax- deferred compounding because the earnings that would be lost to taxes each year remain in the annuity to generate additional earnings.
- A deferred annuity might be right for you if you’re looking for the stability of a fixed interest rate, tax-deferred growth and a steady stream of income payments to begin later in life – possibly when you retire.
- A variable annuity provides the potential for your dollars to grow by giving you the opportunity to invest in any number and combination of investment options and money managers to suit your goals and risk tolerance. These investment option portfolios are managed by respected names in the mutual fund industry. A variable annuity is tax-deferred – another feature of an annuity. Of course, investing does include the risk of loss, including principal.
- An immediate annuity can help by converting a portion of your savings into an income stream that’s guaranteed by Ameritas to last as long as you need it. The payment option you choose, your age and the premium you’ve paid will determine how much you will receive.
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An annuity can be used to help you increase your savings, protect your savings, or provide a stream of income you cannot outlive. Share your goals with a financial professional. Once they know where you’ve been, where you are, and where you want to go, they’ll work with you to map out strategies to help lead to the place you want to be.