Everyone wants to be able to sustain themselves in retirement. We are living longer these days. Many of us become concerned that we won’t save enough to last for the rest of our lives. We might even outlive our incomes, and no one wants that. Having the proper funds helps to protect every individual in retirement and old age.
It is never too early to begin saving for retirement. The younger you are when you start retirement savings, the better your security will be in time.
Most young people have a variety of choices to support themselves and their families in eventual retirement. Retirement savings plans, 401(k) investments, and other avenues can help with savings. One of these avenues is through investment in annuities. Many people don’t understand annuities. Never fear if you're one of those people. Annuities can be valuable investment plans at any stage of life.
What is an annuity?
Annuities are investment plans that you buy from an insurance company. You might think about an annuity as insurance for your income.
With an annuity, you can invest a certain amount of your money into certain sets of stocks or bonds. You often can invest a lump sum or make continues investments over time. Doing so will establish a fund that grows over time, depending on the market performance. By investing this money early, you can see a growth in stored income over a certain amount of time until you retire.
After you retire, you can draw on this investment to help sustain your income.
Choosing an Annuity
You can choose from many different types of annuities. If you are still working, you can often start investing quickly and with relative ease:
Income annuities: This type of savings allows you to lock away a certain amount of your income in an investment. You can then receive payments from these investments to use when you retire. Often, income annuities come guaranteed for life. They don’t stop just because you retire. These plans are often good for those nearing retirement.
Deferred annuities: The good thing about these annuities is that they are tax-deferred. While you are still working, you invest a portion of your savings or income in certain assets. You then can let the funds in the annuity grow, often for as long as you like. When you retire, you can then begin to draw on this income. You won’t have to pay taxes on deferred annuities until you begin to use the funds. Consider this money protected, locked away savings for later.
With the correct choices, you can begin annuity investment now. This will allow you to cover your income in retirement.
We can help you establish an annuity that will maximize your retirement income. Call us at (405) 842-2337 for more information on Oklahoma annuities.