The Many Benefits of Annuities

Larry Carlin

Providing Peace of Mind for Families and Businesses. We help you Avoid Financial Disaster by helping you become debt free, providing protection against loss, increasing income and protecting your assets

Published Dec 4, 2024

Today's annuities provide a wide variety of powerful benefits. Here is a quick look at some of the most popular.

Protected Lifetime Income - Annuities deliver cash flow that you can rely on for either a predetermined period of time or for the rest of your life. Having certainty that you won't run out of money in retirement gives people peace of mind to live the life you want in retirement.

Protected Growth - Fixed index annuities offer the opportunity for limited growth in exchange for protecting your principal investment. The ability to limit downside risk of an initial investment while still providing some upside benefits allows you to create a income benefits you can count on in your retirement plan.

Tax-Deferred Earnings - Taxes aren't paid on the gain in an annuity until they're withdrawn. Unlike a 401k or IRA, there is no cap on how much you can contribute to an annuity or income limitation to consider. You can fund an annuity with pre-tax money or with after-tax money which case the tax would only be paid on gains.

Protected Assets - Because annuities are insurance contracts and therefore not subject to probate, they can protect your estate's assets from public disclosure and taxation. Annuities can also be used to protect assets from creditors.

Protected Family Benefits - An annuity can be used to leave a legacy including lifetime income for your designated beneficiary. Annuities can be customized to help pay for living expenses of your child with special needs or your grandchild's college education, while avoiding the burdens arising from probate.

Other benefits include not having annual contribution limits so you can use them to make unlimited contributions to make up ground in your retirement savings.

The evolution of annuities are why they are a mainstay in retirement planning and is why it is important to consult with a retirement planning specialist to learn more about the potential benefits to you.