June is Annuity Awareness Month, a time to educate individuals on the benefits and importance of annuities. If you’re new to annuities or need a refresher, keep reading to understand the basics of annuities.
Basically, an annuity is a financial product that can provide a steady stream of income during retirement. With people living longer and the uncertainty of Social Security, annuities can be a reliable source of income in retirement.
These insurance-based financial products come in different forms, such as fixed, indexed, and variable annuities. Fixed annuities provide a guaranteed rate of return, while indexed annuities offer the potential for higher returns based on the performance of a market index. Variable annuities allow individuals to invest in a variety of mutual funds and other investments, with the potential for higher returns but also higher risk.
One of the primary benefits of annuities is their tax-deferred growth. This means that earnings on the annuity are not taxed until they are withdrawn, allowing individuals to potentially earn more money over time. Annuities can also provide a death benefit to beneficiaries, ensuring that loved ones are taken care of even after the annuity holder passes away.
It is important to note that annuities are not for everyone. They can be complex and often come with fees and surrender charges if money is withdrawn before a certain date. That’s why it is important to fully understand the terms and conditions of an annuity before investing.
Annuity Awareness Month is a great opportunity to educate yourself or talk to a financial professional about the benefits and potential drawbacks of annuities. By increasing your knowledge of these financial products, you can make more informed decisions about your retirement and financial future.
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Annuities can be a great option for retirement given that they can provide you with steady income the way Social Security might. However, annuities can be complex and aren’t for everyone. A regularly maintained, comprehensive retirement strategy can make the difference in fitting annuities into your strategy, so contact one of our financial professionals to get started, (603) 261-3736.
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Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.