Andy Toolson
Toolson Wealth Management
3051 W Maple Loop Dr
Suite 325
Lehi, Utah 84043
andy@toolsonwealth.com
(801) 500-1944
Many individuals diligently contribute to retirement plans but often wonder if they will have enough to maintain their desired lifestyle once they stop working. Deferred annuities may serve as a valuable resource in retirement planning, offering a mix of insurance and investment benefits to help alleviate these concerns.
A deferred annuity is a financial product sold by insurance companies that allows you to invest money today for future payouts, typically during retirement. The basic premise is simple: you make a lump-sum payment or a series of payments, and in return, the insurer guarantees that you will receive a stream of income at a later date.
Deferred annuities operate in two primary phases:
Deferred annuities come in several varieties, each with unique characteristics regarding investment risk and potential returns:
Deferred annuities present several advantages:
Deferred annuities are generally most suitable for individuals nearing retirement seeking guaranteed income and wishing to diversify their investment portfolio. They may be especially beneficial for those who have maxed out other retirement accounts and are looking for additional income sources. Conversely, younger individuals or those still in the wealth accumulation phase may find that traditional retirement accounts offer better growth potential without the complexities and fees associated with annuities.
As you plan for retirement, consider deferred annuities' role in your overall strategy. While they may provide stability and security, it’s essential to weigh the costs against the benefits. Consulting with a financial advisor may help you navigate the complexities of annuities and find the right fit for your retirement needs.
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