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Frequently Asked Questions
Common Questions Answered for your convenience.
What is an annuity, and how does it work?
An annuity is a financial product that provides a steady income stream, typically for retirement. You invest a lump sum or make periodic payments, and in return, the annuity pays out regular income, either immediately or in the future.
What are the benefits of choosing a fixed annuity?
A fixed annuity offers guaranteed growth at a fixed interest rate, providing a stable and predictable income stream in retirement. It’s a low-risk option ideal for those seeking financial security and peace of mind.
How does an indexed annuity differ from a fixed annuity?
An indexed annuity offers returns linked to a market index, such as the S&P 500. It provides growth potential with protection against market losses. Unlike fixed annuities, returns can vary based on index performance.
When should I consider purchasing an immediate annuity?
An immediate annuity is ideal if you’re nearing retirement and want to convert your savings into guaranteed income right away. It ensures you have a reliable income stream to cover essential expenses as soon as you retire.
Can annuities be part of a tax-free retirement strategy?
Yes, annuities can complement other tax-advantaged accounts like Roth IRAs to create a tax-efficient retirement income strategy. Certain annuities can offer tax-deferred growth, enhancing your overall retirement plan.
How do I know which type of annuity is right for me?
Choosing the right annuity depends on your financial goals, risk tolerance, and retirement timeline. Our advisors at Annuities Bridge can help you assess your needs and recommend the best annuity solution for your unique situation.