What is Annuity?

Guaranteed income?

Tax Advantage?

Let’s find out more

Types of Annuity

  • Immediate vs. Deferred Annuities

    Immediate Annuity

    Payments begin almost immediately after a lump sum is paid to the insurer.

    Deferred Annuity

    Payments begin at a future date, allowing the invested amount to grow over time.

  • Fixed vs. Variable Annuities

    Fixed Annuity

    Provides regular, guaranteed payments. The insurer takes the investment risk.

    Variable Annuity

    Payments vary based on the performance of investments chosen by the annuitant. The annuitant takes the investment risk.

  • Indexed Annuities

    These annuities offer returns based on a specified equity-based index, such as the S&P 500. They provide a guaranteed minimum return but also have the potential for higher returns if the index performs well.

Key Features

  • Tax Deferral: Earnings from annuities are tax-deferred, meaning taxes are not paid on the earnings until withdrawals are made.

  • Payout Options: Annuities can offer various payout options, including lifetime payments, payments for a fixed period, or a lump sum.

  • Death Benefits: Some annuities include a death benefit, which pays a specified amount to beneficiaries if the annuitant dies before the annuity payments begin.

Benefits & Common Uses

Benefits

  • Guaranteed Income: Annuities can provide a reliable income stream, which can be beneficial for retirees.

  • Tax Advantages: The tax-deferred growth can be advantageous for long-term savings.

  • Customization: Annuities can be customized with various features and riders to meet individual needs.

Common Uses

  • Retirement Income: Annuities are commonly used to provide a steady income stream during retirement.

  • Estate Planning: Annuities can be used as part of an estate planning strategy to provide for heirs and manage wealth transfer.

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The best time to start is when you think it’s too late. By preparing as soon as possible, you can take steps towards living the life you desire. We at Wealth Bridge Solutions are here to help you build that future together..