October 1, 2013

Understanding Annuities & their Role in Retirement Security

According to the website Annuities.org, "An annuity is a financial contract between you and an insurance company. In return for the premium or premiums you pay into it, either in one lump sum, or over time, the insurance company agrees to repay you either immediately or at regular intervals sometime in the future." The website includes a helpful table showing the pros & cons of annuities. Annuities are a tax-deferred way to save for retirement and to ensure an income that you cannot outline (similar to Social Security) during retirement. Income annuities can provide valuable peace of mind for retirees but need to be purchased from low-cost providers to avoid paying excessive commissions and expenses. Learn more at: http://www.annuity.org/annuities/

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