Health Upgraders

Purchasing an annuity for your retirement can be a good decision. Part of that decision is working with a broker that you can trust. Before finding that broker, familiarize yourself with a few basic points.

What is an annuity?

An annuity will provide a guaranteed income for a number of years. It takes a principal sum that has been paid into the annuity and invested and pays it back to the investor in regular payments over a number of years. An investor should realize that his or her money would be tied up for many years. There are penalties for taking payments before age 59.5. In some cases you are able to borrow against your annuity.

What are the different types?

Immediate and deferred annuities refer to how the lump sum is paid out. Fixed and variable annuities refer to how the annuity earns interest. Your broker will have detailed information about each.

How will my annuity be paid?

You have a few different options here, lump sum pay out, lifetime guaranteed income and systematic payments in a set schedule. There are deeper details for each of these as well, but you will establish how you want the pay outs to happen. Based on your retirement situation, annuities are a good investment.

What is the purpose of an annuity?

The purpose of an annuity is to help ensure a fixed and stable income for retirement or when someone stops working or is unable to work. Annuities work well for people who believe their tax bracket will be under 28% at retirement. The other point to remember is that an annuity is a good counterpart to life insurance. Both are important and have a place in your retirement portfolio.

Annuities are a good investment for retiring in Memphis, Tennessee. Talk with a broker to see if an annuity makes sense for your retirement. Tennessee has some of the best brokers in the country to help you make your decisions.