Annuities in Frisco, TX can be described as a deferred income plan, a reverse life insurance, or a personal pension plan. With life expectancy increasing along with the cost of living, many older Americans face the real prospect of outliving their income and are turning to annuities.
A Better Future
While Social Security payments can help contribute to your income after you reach a certain age, as you grow older, it might not be enough, since the cost of living is likely to keep rising. Annuities are low-risk vehicles that guarantee a regular income after you reach a certain age. Planning for annuities as part of your retirement planning portfolio can help ensure more worry-free golden years, even during a recession.
At their most basic level, annuities in Frisco, TX, will be a contract between you and the insurance provider that will provide you with a fixed income at regular intervals in return for a lump sum investment. There are variations to this; you can ask that the payments be made to either you or your spouse, that the payments be made only for a fixed number of years, that the payments start after a few years, that the payments be fixed, indexed to inflation, be flexible with a minimum guarantee and scope for increase, or dependent on the performance of the fund.
Vital Facts about Annuities in Frisco, TX
There are a few tax advantages to annuities in Frisco, TX. First, annuities are tax-deferred, which means that you don’t need to pay taxes on the income generated by the annuity until you begin withdrawing the money or payments. This can help you deposit a lump sum in your annuity as soon as you receive retirement benefits and avoid paying a tax on the returns for a few years if you choose a deferred annuity plan.
The IRS has also released clear guidelines that permit individuals to convert part of their 401(k) funds into a deferred annuity so that they will have an income during their later years.
Saving for retirement involves multiple components: putting aside some money each month for retirement, ensuring that these funds provide greater returns, and also making sure that there is no tax loss during the investment years. An annuity fits most of these criteria, as you can invest in an annuity as soon as you turn 65 and defer taxes while you wait for the investment to grow. This will also reduce the amount you need to pay the annuity even as you are assured of regular income a few years later. Annuities are tax-free investments and are designed to ensure a comfortable retirement.
Keeping it Simple
While annuities cannot be the only asset in your portfolio, consider investing in annuities in Frisco, TX to help supplement payments from Social Security. As these funds are managed by the annuity provider, you do not have to worry about making investment decisions. Instead, all you need to do is make a single decision and sit back and enjoy regular income for either the rest of your life or for a fixed period of time.
To learn more about annuities, contact Jason Graziani at 972-992-1920.
Annuities Frisco TX
15150 Preston Road, Suite 300
Dallas, Texas 75248