Annuities can be a very useful financial product for conservative investing for the longer term. Annuities offer some advantages over CD’s or bonds.
Annuities can be good for investors…
- looking to save more for retirement in a tax-deferred investment
- wanting asset protection with the potential for growth
- seeking stable, guaranteed lifetime income
Annuities offer some advantages over CD’s or bonds:
Higher Interest Rate
- Annuities generally offer higher interest rates compared to CDs. This can be especially beneficial if you’re looking for better returns on your investment.
Tax-Deferred Growth:
- Annuities provide tax-deferred growth. Any interest or earnings within the annuity accumulate without being subject to immediate income taxes.
- You only pay taxes when you withdraw money from the annuity. This can be advantageous for long-term investors who want to maximize their tax efficiency.
Lifetime Income Options:
- Annuities are often used as retirement planning tools because they offer various payout options.
- With a lifetime annuity, you receive regular payments for the rest of your life (or a specified period).
- This provides a predictable income stream during retirement.
- CDs, on the other hand, do not offer this feature. They provide a lump-sum payout at maturity, but you’ll need to find other sources of income afterward.
Interested in finding out more about annuities?
Call us at 800-380-8376.
Or schedule an appointment with us to discuss your needs.