Annuities Could be a Great Vehicle for your Financial Portfolio
Annuities are tax deferred savings vehicles that are produced by life insurance carriers. They come in three basic forms.
- Single Premium Deferred Annuities, which allows the annuity holder to deposit a single lump sum amount. Then the dollars accumulate in a tax free environment.
- Flexible Premium Annuities, allow the annuity holder to deposit an initial premium and subsequent deposits on various deposit modes. The monies also grow tax deferred.
- Single Premium Immediate Annuity, is used to create an immediate payout, whether it be, monthly, quarterly, or yearly. There are many payout options which can be reviewed at the FAQ section.
Individuals contribute billions of dollars yearly into annuities. They provide a wide spectrum of risk tolerances for investors; from fixed interest to equity index with principle guarantees.
For those individuals who have “max’d out” their allowable retirement plan contributions, tax-deferred annuities should be part of your overall portfolio.
