Annuities in Long Island

An annuity is a retirement investment that provides guaranteed income. Annuities offer flexible payout options that can help retirees meet their cash-flow needs and provide many benefits for retirement investors. One of the most appealing benefits of an annuity is the option for a guaranteed lifetime income stream, backed by the claims-paying ability of the issuing insurer.

Deferral of taxes is another big benefit, and so is the ability to put large sums of money into an annuity – more than is allowed annually in a 401(k) plan or an IRA—all at once or over a period of time.

Annuities also offer a death benefit; generally if the contract owner or annuitant dies before the annuitization stage, the beneficiary will receive a death benefit at least equal to the net premiums paid. Annuities can help an estate avoid probate; beneficiaries receive the annuity proceeds without time delays and probate expenses.

When you purchase an annuity contract, your annuity accumulates tax-deferred until you start taking withdrawals in retirement. Distributions of earnings are taxed as ordinary income and may be subject to an additional 10% federal income tax penalty if taken prior to reaching age 59 1/2.

Fixed Annuities and Variable Annuities

Fixed annuities pay a fixed rate of return that can start right away (with an immediate fixed annuity) or can be postponed to a future date (with a deferred fixed annuity). Although the rate on a fixed annuity may be adjusted, it will never fall below a guaranteed minimum rate specified in the annuity contract.

Variable annuities are another investment option. Please contact our office for more details regarding the performance of variable annuities.

Of course, there are contract limitations, fees, and charges associated with annuities, which can include mortality and expense risk charges, sales and surrender charges, administrative fees, and charges for optional benefits. Surrender charges may apply during the contract’s early years in the event that the contract owner surrenders the annuity.

Should an annuity be part of your retirement strategy? Call now to schedule a complimentary consultation to review your retirement planning strategies and discuss whether annuities have a place in your financial plan. Call: 631.393.2888 or Toll Free: 877.876.2707

Sign up for our Newsletter!

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Long Island Financial Advisor will use the information you provide on this form to be in touch with you and to provide updates and marketing.