We all know that having the right insurance coverages in College Point, Howard Beach, Far Rockaway, Middle Village, Arverne, Woodhaven, and the surrounding areas is important, but what about ensuring that you have the money to live during retirement? There are a number of different options for that, but one that you might not be aware of or have considered is annuities. Give a call to the experienced team at Hughes Associates and speak with one of our agents to learn more about annuities. You may find that you want to include them as part of your overall future planning scheme. Contact us today to learn more.
What Are Annuities?
Before you rush out and get an annuity, it is important to understand what an annuity is and what it can do for you. An annuity is usually used as a retirement vehicle because it provides you a set amount of money each year, quarter, or month when you are in retirement. Annuities also do not have any restrictions on the amount of money invested in them, unlike other retirement options like a 401(k) or an IRA.
You will pay into an annuity for a set period of time, which is commonly referred to as an accumulation phase. Annuities provide a lot of flexibility in payments for you, your spouse, your heirs, or other combinations. Annuities do not need to start paying out until you desire to do so. Therefore, you can pay into an annuity, get to the end of your payment requirements, and then let the annuity sit there earning interest until you want or need to start drawing from it.
Many people confuse life insurance and annuities, but they offer opposite purposes. Where a life insurance policy pays out when the insured person passes away, an annuity pays out during the life of the insured person. This is why it is best to look at annuities as retirement options where you can use that money during your life.
Different Types of Annuities
As with most other things in life, annuities come in different types that you should be aware of. The main two types of annuities are deferred and immediate. As you might guess, immediate annuities are funded in full right away and then begin payout at the next payout cycle – monthly, quarterly, or annually. Within both of these categories of annuities, there also exist both variable and fixed annuities. Fixed annuities provide a set amount for each payment, whereas a variable annuity has fluctuating payments based on the performance of the underlying investments.
No matter what type of annuity you think you might be after as part of your retirement planning in College Point, Howard Beach, Far Rockaway, Middle Village, Arverne, Woodhaven, and the surrounding areas, it is important to speak with someone who can help answer all of your questions. Call our team at Hughes Associates to plan out the right annuity for you.