What Is A Guaranteed* Lifetime Income Annuity
A Guaranteed Lifetime Income Annuity?
A guaranteed lifetime income annuity via a fixed index annuity is a contract. To start, you deposit money into the annuity. At that point, the insurance company has a contract with you. The fixed index annuity converts the value into set payments, which happen over time. Typically, you can set payouts to begin once you hit age 60. Often, if you delay your withdrawals, the income payments are larger. To be sure, the value of your annuity is also protected.
A Guaranteed Lifetime Income Annuity Payout?
With a fixed index annuity (FIA), you receive a series of fixed payments. Specifically, this occurs over a set interval. Some fixed index annuities offer additional benefits such as increasing income. The idea is to help you keep up with inflation or other cost increases in retirement.
Nick Messina and his team are happy to meet with you. They will answer all your questions. Including, “What is a guaranteed lifetime income annuity?”
Remember, some withdrawals may impact taxes. For example, taking money prior to age 59 1/2 may create an additional 10% federal tax on your money. It is important to seek sound advice. An FIA can provide an answer to “What is a guaranteed lifetime income annuity?” However, choosing the right options for you is key.
Money Is There When You Need It Most
Choices of benefits are main reasons people choose these types of annuity contracts. During market dips, the insurance company takes the risk, not you. In addition, FIAs offer ways to secure your future. Your beneficiaries can also receive your annuity assets without probate.
Generally, the accumulation time period is set between 5 – 10 years. Follow contract terms, and no surrender charges are applied. The interest credit to your annuity contract is also protected. You may choose a longer period. This may possibly increase interest rate. Our firm is here to help you review your options. Join us for our seminars and client meetings. Here, we cover all the details you need to make an informed choice.
How Much Will You Get?
You can control your retirement income with a fixed index annuity. In the accumulation phase, your money will grow. When ready, you have the flexibility to start taking income payments at the time of your choice. Your contract details the payout schedule. Work with Messina’s Wealth Managment to figure out “What is a guaranteed lifetime income annuity?”
When Do You Get Your Income?
There are many choices in terms of when you get your annuity payments. One would be immediate income, another would be deferred income. In some cases there may be tax benefits depending on which method you choose. Some of the income may be a refund of what you paid into the annuity. The other part may be taxable due to the interest you earn. When you withdraw income that is when you will pay taxes. Of course, we recommend that you consult with tax professional if you have any questions about taxes.
Not Just Your Life
Fixed annuities allow your beneficiary to receive the value of your annuity if you pass away before pay out. Some types also allow a death benefit to your loved ones, even after income payments. Your beneficiary can get this money in payments. Or, in one lump sum. Even people who have no plans to access income from their annuity may choose a fixed index product. In addition, your beneficiaries receive the money without needing to go to probate.
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