An annuity is a contract with an insurance company that promises a guaranteed payment stream over a certain period of time. Guarantees are based on the claims paying ability of the underlying insurance company. Annuities holders can also take a lump-sum payment upon cashing out.
A big advantage to annuities is that they allow investors to save a larger amount of tax-deferred cash than a plan with contribution limits, such as 401(k)s and IRAs. This is particularly helpful for people who are close to retirement age and have maxed out other retirement investment vehicles or have not saved enough money to live out their Golden Years comfortably.
American Benefits offers a variety of annuity plans to fit an array of retirement planning needs, including:
- Fixed annuities. Just like it sounds, these annuities promise a fixed interest rate return on your money, with your insurance company handling the investment side.
- Variable annuities. These allow the annuities holders to invest in different vehicles with the hope of growing their money. Variable annuities hold higher risk, and there are no guarantees. They also carry high annual fees. You should carefully consider the investment objectives, risks, and charges and expenses of the variable annuity before investing. Please call us at 503-292-1580 to obtain prospectuses for the contract and its underlying investment options, which contain this and other information. Please read the prospectuses carefully before investing.
- Indexed annuities. Insurance companies agree to pay the annuities holder up to a certain percentage return of the S&P 500.
There are a number of payout options on annuities. Some provide income for a predetermined period of time. Some offer a payout during the holder’s lifetime only, while others rollover to a beneficiary after the investor dies.
While annuities offer certain advantages, they are not for everyone. An American Benefits financial professional can break down the pros and cons of choosing annuities as part of a sound investment and retirement strategy. Our ultimate goal is to help our clients reach their financial planning goals, and we can help match you with the best annuities plan for your situation.
Call American Benefits today to set up an appointment for an assessment of your retirement plan and find out whether annuities offer the right investment vehicle for you.
Registered Representative and Investment Adviser Representative of and offers securities and advisory services through Signator Financial Services, Inc., Member FINRA/SIPC and an SEC Registered Investment Adviser. American Benefits Financial Services, Inc and Signator Financial Services Inc., are unaffiliated.