Summerlin Benefits Consulting Q&AAnswer
Oct 23, 2024 - 03:40 PM
Annuities are financial products designed to provide a steady income stream, primarily used for retirement. They help protect your money by offering several key benefits:
1. Principal Protection: Many annuities, especially fixed annuities, protect your initial investment (the principal). This means that regardless of market fluctuations, your original investment remains secure. Fixed annuities guarantee a specified rate of return, providing safety from market volatility.
2. Tax Deferral: Annuities grow tax-deferred, meaning you don’t pay taxes on the earnings until you begin receiving distributions. This allows your money to grow without being reduced by annual taxes, leading to potential compounded growth. 3. Guaranteed Income for Life: One of the primary advantages of an annuity is the option to convert your investment into a guaranteed income stream that lasts for life, ensuring you won't outlive your money. This feature is particularly valuable for retirees concerned about longevity risk. 4. Death Benefits: Some annuities include a death benefit feature that allows beneficiaries to receive the remaining annuity balance upon the holder’s death, protecting your legacy. At Summerlin Benefits Consulting, they specialize in helping clients choose the right annuities to meet their needs, with an emphasis on safety and long-term financial security.
2. Tax Deferral: Annuities grow tax-deferred, meaning you don’t pay taxes on the earnings until you begin receiving distributions. This allows your money to grow without being reduced by annual taxes, leading to potential compounded growth. 3. Guaranteed Income for Life: One of the primary advantages of an annuity is the option to convert your investment into a guaranteed income stream that lasts for life, ensuring you won't outlive your money. This feature is particularly valuable for retirees concerned about longevity risk. 4. Death Benefits: Some annuities include a death benefit feature that allows beneficiaries to receive the remaining annuity balance upon the holder’s death, protecting your legacy. At Summerlin Benefits Consulting, they specialize in helping clients choose the right annuities to meet their needs, with an emphasis on safety and long-term financial security.
