What Are Annuities?
As we age, our tolerance towards risk decreases and securing a steady income in our later years becomes critical. Annuities are insurance contracts that guarantees a set amount of retirement income based on your investment. They can help you cover expenses in retirement, replace your paycheck, or give you another tax-advantage way to save for retirement.
Types of Annuity Policies
Deferred Annuities
With a deferred annuity, your money is invested until you retire and you’re ready to start taking withdrawals.
Immediate Annuities
Immediate annuities provide payments as soon as you make your initial investment. This option is suitable for those approaching retirement age.
Fixed Annuities
Fixed annuities are more common and provides a guaranteed income based on your investment.
Variable Annuities
Variable annuities offer a potentially higher payout if the market is performing well, however, the guaranteed income is generally substantially less than a fixed annuity provides.
Who are they for?
Conservative investors looking to:
- Supplement their retirement income and have non-registered money available to invest
- Maximize their income via a tax-reduced investment solution
- Add a no-risk investment option to their retirement portfolio
There are other annuity policies as well. Talk to one of our Insurance Representatives today to understand if annuities are a good strategy for you.
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Libro Wealth Strategies is a program provided by Aviso Insurance Inc. offering financial planning, life insurance and investments to members of credit unions and their communities. Trade-mark(s) of Libro Wealth Strategies are used under licence by Aviso Insurance Inc.