As a part of your retirement strategy you have probably heard of, and possibly thought of, including an annuity into your retirement planning.
First, what is an annuity? Similar to the word “annual” it is related to the idea of yearly, or ongoing. An annuity is a form of insurance product that pays out a steady stream of predictable income, usually starting at retirement age but it is a product that can be structured to pay out at a customized time.
The simple workings are that in an annuity you make an investment (payments over time or a lump sum investment). The annuity then makes payments out to you, usually starting at some future date. The payments can be monthly, quarterly, yearly or even in a lump sum.
Just like any insurance policy or similar investment vehicle, the payment amount is determined by how much you have paid in and can also be affected by how long you have been paying in.
There are many options in setting up an annuity and we understand those options. Let us give you our knowledge and guide you successfully through this process.