Annuities
Annuities are an investment product that can help extend the life of your savings. Many people with families have life insurance to cover funeral expenses and any remaining expenses in their estate. But this type of insurance may not offer any benefit while you are alive. Purchasing an annuity can assist you in extending your savings so you can provide for you and your family during retirement.
What is an annuity?
An annuity is an insurance policy sold by an insurance company designed to provide long-term income; usually after retirement. An annuity contract has two phases, an accumulation phase and a payout phase. During the accumulation phase, the contract owner makes a payment or payments into the contract in exchange for either a fixed or variable return that is not subject to income taxes until withdrawal, permitting the tax deferred growth of your investment. During the payout phase, the accumulated value of the annuity contract can be converted into an income stream that can last for a set period of time or for as long as one lives. Please note: All guarantees for annuities are based on the claims-paying ability of the issuing company.
J.P. Turner financial advisors can select from a variety of annuities, including:
Fixed Annuities
Fixed annuities provide income payments in fixed amounts, which can help you pay fixed expenses during retirement. Payments are determined by the annuity contract.Immediate Annuities
Immediate annuity contracts provide an immediate income stream.Variable Annuities
Variable annuities are long-term investment vehicles that provide income varying from payment-to-payment based on the performance of the underlying investments. They're designed to help offset the effects of inflation. The variable subaccounts are subject to market risks, including fluctuating returns and possible loss of principal; therefore, your investment, when redeemed, may be worth more or less than the original cost. Withdrawals prior to age 59 1/2 are fully taxable and may be subject to a 10-percent IRS penalty. Early withdrawals may be subject to additional fees.
Discuss annuities with your J.P. Turner advisor to determine which type is right for your investment strategy and lifestyle.
