Annuities are designed to be both a savings vehicle and a source of retirement income. An annuity is a contractual financial instrument sold by financial
professionals designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time.
Consider an annuity as a natural hedge. While life insurance is purchased to deal with mortality risk, or dying prematurely, annuities deal with longevity risk, or the risk of outliving ones assets.
Individuals seeking a stable guraranteed retirement income turn to annuities as an appropriate financial vehicle.. Because the lump sum put into the annuity is illiquid and subject to withdrawl penalties, it is not recommended for younger individuals or those with liquidity needs.
Annuity holders cannot outlive their income stream, which hedges longevity risk. Some purchasers hope to cash out an annuity in the future at a profit; however, this is not the intended use of an annuity. So long as you understand that you are trading a liquid lump sum for a guaranteed series of cash flows, the product is appropriate.
Taxes are a part of life, but you have more control over them than you might think. Annuities can provide tax advantages that can make a big difference in your retirement planning over the long term.
Give us a call today at 972-709-6060 and we can show you what annuities can offer for your future.
Material published on this website is not intended to be used, nor can it be used by any taxpayer for the purpose of avoiding U.S. federal, state, or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Neither Ogle Insurance, Best Southwest Insurance, nor it's agents provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.