An annuity is a contract between you and an insurance company in which you make one or more one-time payments and receive regular payouts, either immediately or in the future. Contracts for insurance that promise to pay you regular income either now or in the future are called annuities. Primarily, annuities are used to supplement more conventional sources of retirement income like pension plans and Social Security.
Let us look at the benefits of annuities:
Tax-deferred growth
Until you begin making withdrawals or receiving periodic payments, you will not be subject to income tax on the earnings from your annuity investments. Keep in mind that there may be an additional 10% tax on withdrawals made prior to age 59 1/2. The amount of money you can put into an annuity after taxes is generally unlimited, regardless of your income level or sources of income.
Death benefit
In most cases, the features of insurance that guarantee payment to your designated beneficiaries if you die before withdrawals begin are included in payout methods. This payment does not typically need to go through probate.
Contributions are unlimited
The amount of money you can put into an annuity after taxes is generally unlimited, regardless of your income level or sources of income.
Benefits for life’s earnings
In most cases, you can choose to continue receiving payments to beneficiaries for a predetermined amount of time in addition to receiving payments for the rest of your life from an annuity.
At Hughes Associates, Inc, we focus on the customer and ensure that each solution we offer addresses your particular risks. The professionals at Hughes Associates, Inc. provide solid protection against life’s unexpected moments by tailoring a loss prevention plan to each client’s specific requirements. Contact us if you reside around Queens, NY, Richmond Hill, NY, Forest Hills, NY, Far Rockaway, Ridgewood, NY, Woodhaven, and NY areas.
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