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How Do I Know If Buying an Annuity is Right for Me?

Published by Robert J Stillwell on April 17, 2019

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Annuities are a long-term retirement tool which helps protect and grow your money. There are many types of annuities and many factors to consider when shopping for an annuity. All Annuities ARE NOT CREATED EQUAL; what works best for you can only be determined by you and a skilled agent.

What you want your money to do for you will help determine what type of annuity you may want to consider.

Benefits of Annuities

The attractive features and advantages of annuities include:

Principle Protection

Protecting 100% of your principle with a fixed or equity indexed annuity. Your principle and gains are locked in from year to year and protected from losses.

Tax Deferred

One benefit of an annuity is its tax benefits. The interest earned is not taxable until you take it, unlike a CD or Savings account which is taxable each year.

Avoids Probate

Many people don’t realize what is involved with probate and how it delays proceeds from reaching your beneficiary. Annuity proceeds also pass to the beneficiary privately.

There are many features and riders that allow you to choose an annuity that will meet your individual objectives whether it’s:

  • Leaving proceeds to a loved one
  • Supplementing your income for the future
  • Protecting your savings while getting tax deferred growth

The questions you should consider when determining if an annuity may be a fit for you, or what type of annuity would suit your needs are:

  1. What do I want my money to do for me?
  2. Do I need this money to live off of?
  3. Do I need the interest generated from this on a monthly basis?
  4. Do I have other liquid assets to access in the case of an emergency?
  5. Where is the money now?
  6. What is the current interest rate I am getting?
  7. Am I satisfied with that rate I am getting or do I want more?
  8. How long until I need to access the money?

There are a wide variety of annuities out there that can meet so many different objectives and provide all the advantages that we mentioned above.

For exploring what may be best suited for you or any questions do not hesitate to contact Frederica Rouse 1-800-642-3490.

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