Are you looking to retire but don’t know what type of financial plans you should pursue? A life annuity may be best for you for a number of reasons.
For instance, if you have a life annuity, you are guaranteed not to outlive the income afforded through this financial plan.
Below we outline the five main advantages you will get from a life annuity.
Let’s get started!
Your income will be guaranteed and predictable
When you buy a life annuity, you provide a lump sum of money to an insurance company. In return you receive a predictable and specific amount of income during regular intervals for the rest of your life.
You now have peace of mind knowing that your income will never decrease or end during your lifetime. You have a lifetime guarantee of income if you buy an annuity like this.
A life annuity requires little management
Once you set up an annuity plan, it will require very little or no management, ever. You won’t need to spend any time or worry once you have completed the initial paperwork.
If you want to invest money but do not want to spend any time managing your portfolio, consider getting these life annuities. It is a very low maintenance income management strategy. And the safest.
Tax deferral status
Non registered life annuities are the only investment option that is given a tax deferral status by the federal government. All money put into a non registered annuity is tax-deferred until it’s withdrawn from the account.
Also, annuities have no cap on the amount of money you can.
And it will not be taxed until you withdraw the funds.
Retirement income safe from market and interest-rate risks
If you choose a life annuity, your retirement income won’t be at risk of interest rates or market fluctuations. This is a much better option than putting a lot of money into investment funds if you want guaranteed income.
You never know when a recession may arrive or the stock market may crash. It is against these possibilities, that you build your annuity wall.
Your loved ones can have guaranteed income upon your death
One of the key benefits of getting a lifetime annuity plan is that you can choose to leave an income to a beneficiary once you pass away.
The first step is to take a non registered annuity with payments guaranteed for a certain number of years. If you don’t outlive the guaranteed payments, they can pass on to that beneficiary.
Do you have any questions or concerns about lifetime annuities and their benefits? If so, please leave a comment below or contact us here.