Annuities are an insurance product that will pay out an income, and is a popular option of a retirement strategy. If you are looking to for a steady for of income for your retirement this could be a great option for you. At Stonehenge Advisor Group we are experts in annuities and we’ve helped people in Philadelphia, Pittsburgh, Allentown and the rest of Pennsylvania, and we want to help you with your annuity needs and questions.
Basically the way annuities work is that you would make an investment in an annuity, and after a period of time, it will start paying you back. You also have options on how you will receive those payments. You can choose between monthly, quarterly, annual payments, there is also a lump sum payment option. There are different factors that determine the size and the length of your payment.
The biggest factor when it comes to determining your payments is choosing between a variable annuity and a fixed annuity.
A variable annuity will let you choose for a few investments options, and the level of your payment is determined by the performance of the investment that you would choose. That is why it is variable, since there is no set amount since performance of investment that you choose will determine that.
A fixed annuity pays out in a guaranteed rate of interest. You can choose between having your payments deferred or immediate. Fixed annuities are popular with people who want the convenience and predictability of knowing exactly the kind of income stream you can expect from their fixed annuity.
With the decline of companies offering pensions and the issues with Social Security benefits, it’s left a lot of retirees without a good source of guaranteed retirement income. A good alternative is an annuity to fill in any holes of retirement income. If you’ve been wondering if annuity is the right option for your retirement talk to us, we can show you the annuity options that are available to you.