The Ultimate Guide To AnnuitiesYour One-Stop Resource for Retirement
What are the advantages of annuities?
Annuities offer several financial advantages, but no doubt that the biggest benefit is that the allow us to save bigger amounts of money and postpone taxes.
It will also let us have more control over our investment. We can set a payment schedule or we can choose to have one big payment from our annuity. The first option is the most common one among retirees. Also, they have no annual contribution limit, unlike 401(k)s and Individual Retirement Accounts. This will mean that we’ll be able to save bigger amounts in less time. It’s a great quality for those who want to catch up with saving strategies as retirement period is getting closer.
Also, depending on the kind of annuity we buy, we can guarantee a regular income for our retirement years, to prepare ourselves to inflation and unexpected life expenses, like health emergencies.
Annuities can be a great complement to other fixed income sources (Social Security, Pension Plans).