Annuities in Forked River, NJ
Ensuring your financial well-being in the future should be a top-of-mind concern. It doesn’t matter when you intend to retire or the lifestyle you aspire to as you grow older; actively saving and safeguarding your finances are crucial. Annuities can prove to be highly valuable instruments in attaining these objectives. Nonetheless, annuities can be intricate, so it’s vital to have a comprehensive understanding before entrusting them with your hard-earned money.
What Are Annuities?
An annuity is an agreement between you and an insurance company where the insurer commits to providing payments immediately or later. You can acquire an annuity by making a single payment or a sequence of payments. Similarly, the payout can be a single lump-sum payment or a series of payments spread over time.
How Do Annuities Work?
Every annuity is different, but the general process involves:
- Selection and contributions—You choose a specific annuity type and make payments into a plan provided by an insurance company. Participants in an annuity are formally referred to as annuitants.
- Investment and growth—The insurance company invests the annuitant’s (your) payment, allowing the account to accumulate interest over the duration of the contract. This interest is earned on top of the initial invested amount.
- Payment structure—Once you decide to start receiving payments from the annuity, the payments will combine the original investment amount and the accumulated interest, with fees deducted.
- Retirement income—Once you hit retirement, you can receive regular income based on the agreed-upon payment structure.
Please check with your Findlow Insurance agent to determine the annuity process if you invest in one.
How Often Do Annuities Pay Out?
Annuity payment choices depend on the specific type of annuity acquired. Immediate annuities offer the possibility of receiving payouts within a year of purchase. On the other hand, deferred annuities require a longer time frame for payouts, as they accrue tax-free growth with the inclusion of interest. The agreed-upon payout schedules determine the duration of the income stream and survivor benefits.
Work with Findlow Insurance to choose an annuity with a payout schedule that works best for you.
Get an Annuity Today
If you live in Forked River, NJ, or the surrounding communities, and want to learn more about annuities, we’re here to help. Contact Findlow Insurance today to discuss annuities and whether they would suit you.