Annuities are insurance products that pay a steady income as part of an overall retirement strategy. A person invests in the annuity prior to retirement and, when the time comes, the investment makes future payments on a specific date or a series of predetermined dates. Annuity income can be a set for monthly, quarterly, or annual payments, or it can be received in one lump sum payment.
The size of annuity payments is determined by several factors, including the length of your payments into the fund – payments can occur for the rest of your life or for a set number of years. The amount of the payments also depends
on whether you opt for a guaranteed payment (called a fixed annuity) or payments determined by the performance of the annuity’s primary investments.
Annuities should be thoroughly researched before making the decision that it’s right for you – many variables apply including deferred tax payments and tax ramifications. PNW Insurance Services has the knowledge and ability to work with you to determine if an annuity is truly the correct investment for your specific financial situation.