People hate annuities… until they retire and suddenly love predictable paychecks
Annuities 101:
➤ A long-term, tax-deferred investment designed to turn savings into reliable retirement income
➤ Key benefits:
• Lifetime income potential
• Tax-deferred growth
• Estate planning advantages
➤ Tradeoffs to know:
• Limited liquidity
• Fees and surrender charges
• Early withdrawal penalties
➤ Not one-size-fits-all:
• Fixed = stability
• Indexed = growth + protection
• Variable = higher risk/reward
• Immediate = income now
Bottom line:
➤ Annuities can be a powerful retirement income tool, but they require thoughtful structuring and a long-term mindset.
Annuities Primer - Nationwide
Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.