Annuities: “Income for life”

If you want to increase your income stream during retirement, annuities may be right for you. Annuities are long-term financial vehicles that not only provide a steady income, but other benefits, too. For instance, tax-deferred annuities may provide long-term growth advantages for your wealth management plan. As part of a savings and investment plan, annuities may allow your investments to grow on a tax-deferred basis for many years. If structured properly, some annuities can provide lifetime guaranteed income for you and/or your spouse.

Our advisors can help you decide if such tools fit into your overall retirement strategy, determine if they are likely to increase your wealth significantly compared to traditional savings plans, and evaluate the limitations of standard IRAs. Our advisors have access to a large number of prominent and financially stable insurance companies that offer:

  • Variable annuities*
  • Fixed annuities**
  • Index annuities**

 

Q. What type of annuity is right for you?
A. Through a careful analysis of your financial situation, your Winslow advisor will help you determine what type of annuity should be part of your wealth management program. Following are some considerations:

  • A variable annuity is a contractual agreement, in which you would make a payment to an insurance company that in turn would pay you an income or lump sum amount related to the investment at a later date. The growth potential and investment risk in variable annuities fluctuate with that of an underlying securities portfolio. Values of variable annuities may be more or less than the original amount invested upon redemption. There are contract limitations, fees, and charges associated with variable annuities. Your advisor can help you evaluate whether or not you should expose your assets to the risk of unforeseen market changes in the search for higher gains. Your advisor might suggest you consider some of the newer generation variable annuities, which offer certain income or withdrawal guarantees and can reduce a large portion of risk created by volatile markets. In addition, your advisor can structure your annuity contract to provide specific death benefits to your survivors.
  • Fixed or Indexed Annuities: If variable annuities are not appropriate for your needs, or your investment time horizon is not long enough, fixed annuities may be more appropriate. Fixed and equity indexed annuities offer specific guaranteed rates that can be helpful for the planning needs of more conservative investors.

 

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To learn more about how insurance benefits can protect your family, property and estate, please call a Winslow advisor today.

* Risks associated with variable annuities include, but are not limited to: mortality and expense risk charges, sales and surrender charges, administrative fees, and charges for optional benefits. Early withdrawals may be subject to surrender charges and taxed as ordinary income and, in addition, if taken prior to age 59.5 an additional 10% federal income tax penalty may apply. Withdrawals reduce variable annuity contract benefits and values. Variable annuities are not guaranteed by the FDIC or any other government agency and are not deposits or other obligations of, or guaranteed or endorsed by, any bank or savings association. Variable annuity guarantees are backed by the claims-paying ability of the life insurance company and do not apply to the principal amount or investment performance of the separate account or its underlying investments.

** Fixed and indexed annuities are not insured by the FDIC or NCUA; may lose value; are not guaranteed by the FDIC or any other government agency; are not deposits or other obligations of, or guaranteed or endorsed by, any bank or savings association.