Annuities

An annuity can help secure a stream of payments to use as a form of retirement income. When you purchase an annuity, you may get tax breaks or be able to receive income at regular intervals in exchange for a one-time lump sum payment to an insurance company.

Types of Annuities

There are FOUR main types of annuities:

• Fixed Annuities pay a guaranteed interest from the date of deposit to its ultimate maturity period selected.  Maturity periods range from 2 to 10 years. The interest growth is tax-deferred until withdrawals are made.
• Fixed Indexed Annuities generally provide a higher return than Fixed Annuities but are less risky than variable annuities. There’s a guaranteed minimum payout, and a portion of the interest earned is tied to a market index, such as the S&P 500
• Variable Annuities allow the account owner to choose from a menu of mutual funds and can produce higher returns. Payments are based on the performance of the mutual funds. There is some risk associated with variable annuities. There are internal fees in this annuity type that must be properly disclosed and understood.
• Single Premium Immediate Annuities starts paying income typically after a 30-day waiting period from the deposit date.

The amount of money you receive from an annuity is based on the type of account you choose, the insurer’s terms, and the amount of money you invest.

The best way to determine how much GROWTH or INCOME your annuity investment may generate is to get an individualized quote from your insurance agent.

How to Purchase Annuities

An annuity may help you reach your ACCUMULATION or INCOME goals. Ragusa N Rosa Insurance Associates, LLC  can help you understand your options so you can start investing right away.