An annuity is a tax-advantaged investment that can be implemented as part of an overall retirement strategy. Annuities are designed to either accumulate on a tax-deferred basis, until you need income, or ensure a steady source of income immediately and throughout the duration of retirement with payouts on a monthly, quarterly, annual or even a lump-sum basis. If you’re nearing retirement age and need to catch up, an annuity is beneficial because unlike a 401(k) or IRA, there are no contribution limits and taxes are deferred on your investment gains until they are distributed.
Types of annuities include fixed (with a guaranteed payout) and variable (returns are based on how your investments perform) and they can be paid to the owner immediately or they can be deferred until the owner is ready to receive payments. However, as with most investment vehicles, expenses vary greatly from product to product. So it is imperative that you carefully consider your investment objectives when working with an experienced financial advisor from Financial Brokerage Services in DC, Maryland and Virginia.
Get an edge when planning for your future. Financial Brokerage Services, with experienced financial advisors in Northern Virginia, provides expert guidance for investors around the mid-Atlantic or DC, Maryland and Virginia. Call us today at (301) 320-2000 to arrange an introductory consultation.