You’ve dreamed of this moment for years. After decades of hard work, you’re finally ready to settle down and retire.<\/p>\n
Understandably, you’ll want your retirement to be comfortable and stress-free<\/a>. One of the easiest ways you can ensure a great retirement is by securing an annuity.<\/p>\n But just what is an annuity and how do you go about setting one up?<\/p>\n Read on to learn the ins-and-outs of annuities and see how you can secure your retirement.<\/p>\n What is an Annuity?<\/strong><\/p>\n At its core, an annuity is reliant on an agreement between you and an insurance company. This agreement states that in exchange for your capital, you’ll receive a set income for life and a certain number of years if you wish.<\/p>\n This means that you will receive guaranteed income after buying an annuity policy. There are two factors to consider.<\/p>\n First and foremost is the age of the person purchasing the annuity. Generally speaking, the older you are<\/a>, the higher your income will be.<\/p>\n It’s also worth noting that registered annuities are taxable and non registered annuities carry a low tax rate which is sometimes zero.<\/p>\n Types of Annuities<\/strong><\/p>\n Now that we’ve established an understanding of what an annuity is, let’s talk about options.<\/p>\n Your annuity is all about investing your registered or non registered funds.<\/p>\n They are the only two types of annuities.<\/p>\n A registered annuity is the end plan for your RRSP savings and other registered money from a LIF or a LIRA for example. Payments are taxable.<\/p>\n In contrast, a non registered annuity carries far less tax. Who Should Consider an Annuity?<\/strong><\/p>\n We’ve answered what is an annuity, but now let’s focus on who an annuity is for.<\/p>\n In short, anyone concerned about their financial future should look into purchasing an annuity. If you’re looking to secure a safe and stable retirement, an annuity is a smart choice.<\/p>\n When considering whether or not an annuity is right for you, ask yourself a few questions:<\/p>\n
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