Annuities are insurance contracts between that provide payments to you so you are financially secure during retirement. These payments can be immediate or happen in the future depending on which kind of annuity you purchase. For further information, reach out to your agent at Steve Jones Perez Health & Wealth Advisory. 

What Is an Annuity?  

An annuity is a long-term investment between you and your insurance company. After you make a lump-sum payment or a series of payments, your insurance company will make periodic payments starting on a set date or immediately, if so designated.  

What Are the Different Types of Annuities? 

There are three main types of annuities:  

1. Fixed—Your insurance company pays you a minimum rate of interest and fixed period payments. Your fixed rate is regulated by each individual state. Be sure to check with your unique regulations.  

2. Variable—Your insurance company allows you to choose where you would like to invest your payments from different options such as mutual funds. Payments and rate of return will vary.  

3. Equity-indexed—Your insurance company credits you with a return based on changes in an equity index during the accumulation period. A minimum return is typically guaranteed by your insurer.  

What Are the Benefits of Annuities?  

Most people invest in annuities to secure financial security during retirement. There are two phases of annuities: the accumulation phase and the payout phase. All areas of investment carry a level of risk along with benefit. It’s important to assess the financial strength of a company before investing because you want to be sure they will still be around during the payout phase.  

The main benefit of investing in annuities is to ensure you have financial stability during retirement and after you stop receiving a regular paycheck. The following benefits also apply:  

• They enable you to diversify your portfolio.

• They help ensure you avoid outliving your assets.

• They protect assets from creditors.

  

Contact Us Today 

At Steve Jones Perez Health & Wealth Advisory we want to help you learn about a future with an annuity. Contact us today to speak with an agent about annuities.