Annuity
PLANNING & MANAGING YOUR RETIREMENT
WRITTEN BY:
SHEENA ROSE QUERRER
Life goes by fast (really fast), and before we know it, retirement is just right around the corner.
People spend most of their adult lives working in order to tend to responsibilities (bills), but sometimes they are not adequately prepared for life without work. In other words, by the time retirement age comes, most people do not have enough money or at least not enough to meet their expectations.
Well you might ask, "What do you mean? Isn't that what our 401(k)s, IRAs, and SSIs are for?" Yes, you are absolutely right, but are these funds going to be enough realistically?
There is no doubt that cost of living continuously gets higher and unexpected events can happen at any time. And most importantly, how does one define retirement? Each person has a different expectation when it comes to retirement and there is absolutely no 'right' way to live it.
So ask yourself, are you truly prepared?
Let's dive into an annuity. What is it? Let's put it this way. An annuity is like planting a tree that bears fruit.
During its beginning stage, called the accumulation phase, you, as the owner, will contribute to it little by little (like a plant, adding fertilizer occasionally and watering it sufficiently) until it has successfully grown to its full potential (such as when the tree starts to bear fruit) so that you, as the annuitant, are able to benefit from it (in this case, of course, when you are able to eat the fruit during the time it is ready to be harvested), called the annuitization phase.
In the accumulation phase of an annuity, the owner makes a contribution either with a lump sum amount (one-time payment) or with periodic payments, which is dependent on the type of plan they choose to have. Over time, the money put
in grows until the annuity plan reaches its annuitization phase. The owner then assigns the annuitant, most likely as him/herself, and starts receiving 'income' from the annuity account. The owner can also assign a beneficiary that can continue to receive payments from the annuity account if in case an unexpected event occurs that causes for them to be deceased. Unlike life insurance, an annuity will pay out until the annuitant dies or for a certain period of time assigned to a beneficiary following the death of the annuitant.
We have partnered with American National Insurance Company to serve our clients with the best types of annuity plans out there.
Here are the products we offer:
#1 Fixed Deferred Annuity
#2 Single Premium Immediate Annuity
#3 Index Deferred Annuity
Whether it be 10 years, 20 years, 30 years or however many years from now, don't let retirement come to you as a surprise. Let's plan your future together by planting your tree now.
