What Is an Annuity?
An annuity is a contract between you and an insurance company, under which you pay money for a set period of time. In return, you start to receive regular payments for a set period of time. The amount of time you pay into the annuity can vary from a one-time payment to several smaller payments over a long time period.
What Is a Fixed Annuity?
A fixed annuity is similar to a pension, allowing for regular payments at an established rate once you have saved up a specific amount and reached a specific age. The size of your payments will depend on the investment options you have selected for your annuity.
What Is a Variable Annuity?
This is a riskier type of investment as opposed to the fixed annuity. The future payments are based on the performance of the contracts underlying investments. The insurer guarantees a minimum payment but depending on the performance, the payout could be greater.
How Does an Annuity Work?
Annuities provide income for those who believe Social Security may not be enough for retirement. When you reach the age where you begin receiving annuity payments, you will be paid a guaranteed amount of income every month until your death.
Annuities typically offer tax deferred growth of earnings and may include a death benefit that will pay your beneficiary a guaranteed minimum amount.
Annuities work by converting savings and investments into a pension or regular payment. If you buy stocks, bonds or other investments, you eventually need to be concerned with how your investment will translate into growth and income. Annuities solve this problem by providing you with a regular stream of income.
Annuities are often used in retirement, but they can also be a way to enjoy a regular income from a lump-sum inheritance or if you are financially independent.
What Is the Upside of Working With Gunn-Mowery?
If you’d like a guaranteed income for retirement, or even before retirement, and think annuities are a good fit for your financial needs, Gunn-Mowery, LLC can help. We can help you determine whether annuities are right for you and compare your options to help you meet your financial goals.
Choosing the investments that sustain your annuity is one of the most important decisions you will make. Your investments will determine your risk and your income. Gunn-Mowery, LLC can work with your individual financial goals, your risk comfort level and your income needs to find the right balance for you. We can show you how different investments can impact your annuity and can help you find investments to help your annuity thrive. That’s the Upside of Insurance when you work with Gunn-Mowery.
We offer a range of innovative annuity products and services that can serve your retirement and long-term financial needs. Trust our experts to walk you through the options, match them to your lifestyle and needs, and help you plan for a sound financial future. The Upside is being able to call an advisor, not a sales person.