With all of the different options you have for retirement planning in Myerstown, Reading, Sinking Spring, Wernersville, Wyomissing, PA, and the surrounding areas, one option that many are unfamiliar with are annuities. These are plans that provide for specified payouts beginning at a specified time from funds that are either deposited in a single batch, or over a period of time. At Stubbs Insurance Agency we provide annuities for people to help them with retirement planning or other financial assistance. There are several different kinds of annuities, so it is important to understand what each one is and how that can affect you and your loved ones. While most annuities are deferred, meaning that they will start to pay out at a future date, there are some that are immediate annuities that being paying out as soon as the funds have been deposited. Contact us today to learn more about how an annuity might be the right vehicle for your retirement or other financial situation.
Understanding The Participants To An Annuity
When it comes to annuities, there are three participants to the deal. The first is the owner of the annuity, which is the person that buys the annuity and pays the premiums. The second is the annuitant who will be receiving the annuity payments. Usually, the owner and the annuitant are the same person, but there are times when they might be different. Finally, the third person is the beneficiary who is the person who receives the death benefit when the annuitant dies, if such a benefit exists.
Annuities are often used as retirement vehicles, as they provide income in regular installments during a person’s retirement years. Many times, a company will use an annuity in lew of a pension or other retirement option, and in this case the owner and the annuitant will be different people. There are different annuities that provide a fixed amount or a variable amount.
When To Include Them in Retirement
This is the biggest question that people have as they want to know if they are missing out on something that should be part of their retirement planning. If you are worried about running out of money in retirement, an annuity can provide for that guaranteed income. Fixed annuities also tend to outperform bank CDs, and many who have maxed out their tax-advantaged retirement plans also turn to annuities as their growth is also tax-free when bought with after tax dollars.
Every retirement plan is individualized for a person in Myerstown, Reading, Sinking Spring, Wernersville, Wyomissing, PA, and the surrounding areas, and that might mean having an annuity as part of your plan. The best option is to speak with our team at Stubbs Insurance Agency to better understand how they work and how they might play an important role in your retirement planning. Contact us today to schedule time to discuss adding annuities to your retirement plan.