Annuities Help Regulate Your Cash Flow for Retirement
At Breedlove Insurance Agency, we provide a full spectrum of insurance to help you prepare for your family’s future. As a part of our financial planning options, we offer annuities. An annuity is an insurance contract in which you pay into a fund (usually tax-free), which then is used to provide you with a set income for several years or the rest of your life. At Breedlove Insurance Agency, we can help you understand different types of annuities and other retirement planning options to determine what works best for your goals. We have been serving the people of Oro Valley, AZ, Santa Fe, NM, and surrounding areas for more than 19 years, and we truly care for our clients. Contact Breedlove Insurance Agency today to learn more about annuities and other insurance options for your future.
Which Type of Annuity Works for You?
While the basics of different types of annuities are the same – pay in to a fund and receive regulated income over time – there are some important distinctions. Sherry Breedlove is a certified agent who will help you understand the difference between a fixed and variable annuity and determine whether your finances will work best in an immediate or deferred annuity contract.
Immediate Vs. Deferred Annuities
You can choose to start an annuity contract with a large investment up front or by paying into a fund over time. We can help you evaluate your current savings, expenses and lifestyle to determine which works best for you.
An immediate annuity requires that you invest a cash influx into a fund, which will then be regulated and delivered back to you, with interest, over a period of years or for the rest of your life. If you invest savings that has already been taxed into your immediate annuity, you will only pay tax on the interest your annuity makes. You can begin receiving monthly, biweekly or other regular payments from your annuity immediately and rest assured that your savings will be regulated for the time you require it.
A deferred annuity is a great option if you would prefer to pay into your annuity over time. Once you have paid in a certain amount into your deferred annuity, you then begin receiving payments on a regular basis. This is a great option to consider if you do not have a substantial amount of cash available to begin an immediate annuity.
Fixed-Rate Vs. Variable Annuities
Another main distinction in types of annuities lies in what type of interest rates your annuity will gain. Fixed-rate and variable annuities differ in how much interest your annuity makes and in how much control you have over how it is invested.
A fixed-rate annuity ensures that the interest your annuity makes will not fall beneath a certain percentage. This is a great option for our clients in Oro Valley and Santa Fe who would prefer a retirement supplement that is more “hands-off,” as fixed annuities are invested by insurance companies without input from clients. It also ensures that your money will steadily grow over time by at least a certain percentage.
A variable annuity has fluctuating interest rates. As with any investment that has a variable rate of return, variable annuities carry some risk. However, they do allow clients to take more ownership over how their “sub-accounts” are invested. By investing smartly in various accounts, you stand to earn more with a variable annuity than with a fixed annuity. In parallel, unwise sub-account choices could result in a lower interest rate.
A Dependable Cash Flow for Peace of Mind
Ultimately, your annuity should function as a dependable source of income that you can count on as part of your retirement portfolio. We encourage you to speak with our team about your unique situation today and explore annuities and other retirement options with Breedlove Insurance Agency.