When it comes to planning for retirement, you have options. When you work with one of our advisors at Harvest Wealth Partners, we will not only discuss your goals with you, but we will also discuss the amount of risk that you are comfortable taking on. Depending on your priorities, one resource your advisor may suggest to you is an annuity. An annuity is a type of insurance contract that aims to provide a fixed stream of payments to serve as income during your retirement. While the exact details of the annuity vary from contract to contract, these plans are a common option for people who are concerned about outliving their other savings.
The general idea behind an annuity is to receive consistent payments from an insurance company, providing income after you retire. When you receive payments and for how long is determined by the type of plan that you choose. There are types of annuities that begin paying you right away, and others (deferred annuities) that begin when you reach a predetermined age. Similarly, the amount of time that an annuity pays out for depends on the plan; one might pay out for 20 years, and another for as long as you or your spouse are still alive.
Before choosing an annuity, it’s important to understand the pros and cons of doing so. While many people enjoy the feeling of security in receiving payments for a set period of time, there may still be downsides to choosing this plan. For example, most annuities have a “surrender period” during which there are restrictions on withdrawals. Attempting to withdraw money during this time is usually accompanied by penalties, thus restricting the liquidity of your finances. For this reason, investing in an annuity can be a big decision.
Weighing the pros and cons of investing in an annuity often involves comparing it to other options that are available to you. The financial advisors at Harvest Wealth Partners offer a variety of retirement planning services that are aimed at helping individuals who wish to explore different methods of saving for the future. A few of the most common retirement plans include:
Annuities are a type of insurance contract that aim to pay out a consistent stream of income to the investor at a predetermined time. There are many benefits to purchasing an annuity, but understanding the implications of doing so can help you compare it to other retirement options that are available to you. If you have questions, you may find it beneficial to speak with a professional. To learn more about the retirement planning services at Harvest Wealth Partners, or to schedule an appointment with one of our advisors, contact us today.
Harvest Wealth Partners is committed to helping our clients work towards a successful future. We believe in your potential to understand the financial options that can lead you to your goals. Call us today to partner with our team. We look forward to continuing our mission for years to come.
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