Iowa Retirement Planning

mazeAn annuity is a type of insurance that provides an income that increases with inflation, making it an excellent addition to your retirement strategy. Annuities are common among investors what that want to have a steady income even after they retire.

How Annuity Insurance Works

The way that an annuity works is you invest, then payments are made to you in the future. The income that you get from your policy may be paid out in annual, quarterly or monthly payments. If you prefer, you can even receive on lump sum payment.

The value of the payment that you receive depends on a number of different factors, which includes the payment period length. You have the option to receive payments for the remainder of your life, or over the course of a set number of years. The amount that you receive is determined by the type of payout that you choose.

You have the choice between a Fixed Annuity and a Variable Annuity. The former will provide you with a guaranteed payout. With a variable annuity, however, you will receive a stream of payments that depend on the performance of the underlying investments of your policy.

Many experts recommend annuity insurance, especially for seniors and other who are various stages of their life as they get closer to retirement. If you are considering annuities, the Iowa insurance professionals at Doubleday Insurance Agency, Inc can help you understand all of the facts to determine the ideal investment for your situation.

Understanding the Different Types of Annuities

Basically, there are two different types of annuities, which are immediate and deferred. With deferred annuities, your money will be invested for a time until you want to start taking withdrawals. Typically, you will want to start drawing from your policy once you reach retirement.

With immediate annuity, you will start receiving payments shortly after making your initial investment. For instance, you may want to think about investing in an immediate annuity if you approaching the age of retirement.

While a deferred annuity will accumulate money over time, an immediate annuity will pay. It is important to point out that it is possible for a deferred annuity to be converted to an immediate annuity when you are ready to begin receiving payments.

Within these categories, the annuity may be fixed or variable according to whether the payout is connected to the performance of the overall market or a group of investments, a fixed sum or a combination of the two options.

The Advantages Of Annuity Insurance

The greatest benefit that investing in annuities provide is that they make it possible for you to store away a large amount of money and defer tax payments. Unlike with other retirement accounts that defer taxes, such as IRAs and 401Ks, there is not a limit for annual contribution. This makes it possible for you to save even more money for your retirement. In addition, this is especially useful if you are close to the age of retirement and you have some catching up to do.

All of your investment money will compound year after year without the worry of a tax bill. The ability to hold on to all of the money that you invest and having it work for you is an incredible advantage over other investments that are taxable. Therefore, annuity insurance will provide you with an excellent complement to your other sources of retirement income, such as pension plans and social security.

Obtaining a policy through Doubleday Insurance Agency, Inc will provide you with a way to protect all that you have worked for in your lifetime. Our knowledgeable experts will help you take control of your finances. All you have to do is pay the lump sum and you will receive a check every month for the rest of your life. Even if the money that you initially invested is received, you will continue to receive payments on the basis of your age and current interest rates.

When you reach the age of retirement the most important thing that you can have is peace of mind. That is exactly what you get when you invest in annuity insurance through Doubleday Insurance Agency, Inc. Whether you are close to time to leave the workforce or you are simply preparing for the future, you can take comfort in knowing that you and your family will have the financial support that you need to happily live out the rest of your days in total comfort.

Do not wait until it is too late or waste your hard earned money on investment that will only dwindle your funds due to tax payments. If you are ready to make a wise investment in your future, all you have to do to get started is click on the quote request button now.