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There are several types of annuities to choose from, depending on your specific goals, Whether it's for generating income, planning for your legacy, or providing protection for your spouse. Your financial professional can help tailor a plan for you. Some common types of annuities include:
Variable Annuities: Potential for higher earnings, but with more risk.
Registered Index-Linked Annuities: Limited downside risk with potential for increased earnings based on index growth.
Fixed Annuities: Investment grows at a guaranteed rate of return.
Immediate Annuities: Convert a lump sum into a stream of income.
Fixed Indexed Annuities: Potential for increased earnings based on index growth with downside protection.
Like any investment, annuities come with risks. For instance, if you pass away before the payout period, your beneficiaries may miss out on annuity payments. Additionally, accessing or withdrawing money from your annuity account can be challenging after you've invested it. It's crucial to research the insurance company underwriting the annuity. Key risks include:
Missing the Income Benefit
Annuities are designed to provide a lifelong income stream. You may miss out on this long-term benefit if you pass away suddenly. Some annuities allow you to name a beneficiary, but this may cost extra.
Tying Up Money
Once you've invested in an annuity, accessing or cashing out those funds can be difficult if you suddenly need them. For instance, some immediate annuities restrict access to your principal after investment, even though payments begin immediately.
Insolvent Insurance Companies
Since annuities are long-term investments, ensuring the issuing company is financially stable is important. Research the credibility, history, and credit standing of potential annuity providers.
Contact Us
To learn more about how annuities can help secure your retirement, contact Sargent Insurance Agency in Little Rock. We're here to help you understand your options and find the best solution for your financial future. Visit us today to explore how annuities can provide a stable income during your retirement.
