What Are Your Rights as a Taxpayer in Worthington, OH?
Get a better understanding of your rights as a federal and state taxpayer.
Determine whether annuities are the right type of retirement income for you and your financial goals.
If you’re nearing retirement, you’re likely considering additional income streams and ways to manage your retirement savings. For some, annuities are a great way to ensure a steady income stream during retirement. However, annuities are not for everyone. Here’s what you need to know about buying an annuity in Worthington, OH, and whether it’s the right investment for you.
An annuity is a type of investment you make with an insurance company. After paying a lump-sum or a series of payments, you are paid a regular annual, quarterly, or monthly payment by the insurer. Annuity payments may begin immediately or in the future, depending upon the annuity product selected.
Annuity funds are accrued on a tax-deferred basis and can only be accessed after the age of 59.5 without tax penalties. If funds are withdrawn due to dire financial needs, surrender charges and penalties will apply. Once distributions begin, income earned on the annuity is taxed at the regular income tax rate rather than the long-term capital gains tax rate.
Many annuity features, such as the duration of disbursements and when they begin, can be customized based on your needs, preferences, risk tolerance, and financial goals. By working with a financial advisor, you can determine what type of annuity is best for you and your retirement plan.
Financial advisors often recommend annuities to retirees or those nearing retirement age because they can be a low-risk way to ensure a steady stream of income throughout retirement. Of course, choosing an annuity and what age to begin depends heavily on each individual’s circumstances. Things to consider include:
To learn more about annuities and if they’re the right investment option for you and your retirement plans, talk to Matt Jehn, a Worthington, OH-based fiduciary at Royal Oak Financial Group. Annuities can be extremely complex and should be reviewed with a financial professional that has a comprehensive understanding of your retirement plans, investment objectives, and goals. Matt can work with you to create an extensive financial plan and earn guaranteed income throughout retirement and for the rest of your life.