Investing in an Annuity: What You Need to Know

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About Ben Kunes

Ben Kunes is the host of the Retirement & Income Radio Show and President and Founder of Safe Money Retirement Group LLC. Ben enjoys assisting his clients of all walks of life, with securing their financial future as they prepare for, and enter retirement. Calling on his over 28 years as a licensed professional, Ben specializes in strategies that assist his clients in achieving safety, security, growth without stock market risk, and lifetime income. Ben and his wife of 23 years, Fanny, reside in St. Louis, Missouri, where they are active members of the White Flag Christian Church. Ben and Fanny are blessed with four children, six beautiful grandchildren, and two dogs. In their free time, they enjoy St. Louis Cardinals baseball, St. Louis Blues hockey, and vacationing in Florida. Ben looks forward to meeting with you to share ideas about protecting your retirement money and securing a guaranteed retirement income.

Saving for retirement is a critical part of your financial planning. Most people are familiar with employer-sponsored 401(k)s and IRAs, but there is another option for retirement savings that you may not have considered – an annuity. An annuity can be a great way to ensure a steady income during retirement, but you must understand how this type of investment works before jumping in. This article will provide a basic overview of annuities, their advantages, and considerations before investing in one.

What is an Annuity?

An annuity is a contract you make with an insurance company that allows you to save money on a tax-deferred basis. The insurer agrees to make periodic payments to you over time (usually during retirement). Two types of annuities discussed here are qualified and non-qualified. Qualified annuities are generally purchased with pre-tax dollars from a 401(k) or IRA; non-qualified annuities are funded with after-tax dollars from your savings or investments.

Advantages of Investing in an Annuity

One advantage of investing in an annuity is that it can provide you with guaranteed income during retirement. This ensures that you will always have money coming in regardless of what happens with the stock market or other investments. Additionally, qualified annuities provide tax deferment, leading to greater long-term returns than other investments that don’t provide such benefits. Non-qualified annuities also offer flexibility because they don’t have the same restrictions as qualified plans; however, both qualified and non-qualified annuities come with taxation when funds are withdrawn before age 59 ½.

Considerations Before Investing in an Annuity

Before investing in an annuity, you must research the fees and charges associated with different types of products. It is also essential to match your retirement needs with the right product type; for example, if you need more cash access before retirement age, an unqualified annuity might be best for you since it offers more flexibility than qualified plans. Finally, ensure that the insurer’s terms and conditions meet all your needs before entering into any contracts or agreements.

Conclusion: Investing in an annuity may be a great way to ensure that you have predictable income during retirement, as long as you research and choose the right product for your and your family’s needs!

Understanding everything associated with different types of products is essential to make informed decisions about which ones are right for your particular situation. There are annuity professionals who can guide you through the process and help you develop a plan that works for you.  With proper planning, research, and professional support, investing in an annuity may help pave the way toward financial security throughout your life!

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About Ben Kunes

Ben Kunes is the host of the Retirement & Income Radio Show and President and Founder of Safe Money Retirement Group LLC. Ben enjoys assisting his clients of all walks of life, with securing their financial future as they prepare for, and enter retirement. Calling on his over 28 years as a licensed professional, Ben specializes in strategies that assist his clients in achieving safety, security, growth without stock market risk, and lifetime income. Ben and his wife of 23 years, Fanny, reside in St. Louis, Missouri, where they are active members of the White Flag Christian Church. Ben and Fanny are blessed with four children, six beautiful grandchildren, and two dogs. In their free time, they enjoy St. Louis Cardinals baseball, St. Louis Blues hockey, and vacationing in Florida. Ben looks forward to meeting with you to share ideas about protecting your retirement money and securing a guaranteed retirement income.

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Annuities are a safe and reliable investment. They can transform your savings into a more predictable income. Speak with one of our qualified financial professionals today to find out how an annuity can offer you guaranteed monthly income for life.

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Content in our posted articles is deemed to be accurate but topics, facts and laws can change. It is always a good idea to verify facts before making decisions. Always seek authorized and professional advice regarding financial decisions which includes investing, annuity purchases, tax planning, changes in a financial portfolio and retirement planning.

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