The Best Annuities to Potentially Grow Your Income

June 22, 2023

As you get closer to retirement age, you may think even more seriously about where to invest your money and how much you want to invest. Looking closely at annuities and deciding which ones are the best options for you can help you get a regular income stream when you retire. Searching for different types can help your income grow when trying to optimize your money.

Find Annuities From Trustworthy Sources

Although you may assume all plans will eventually give you a decent income, that is not always true when picking a retirement annuity. Some protect you from market changes while giving you above-average interest rates. Others may not have an excellent reputation, which could mean you end up losing money as the years go on.

Because the goal of annuities is to provide you with a steady income over time when you age, you’ll want to obtain an annuity from a trusted source that will grow the amount of money you initially invested. An annuity can help you reduce your taxable income, making it valuable to find a good place to invest your money for the future and save money in the present.

Understand Types of Annuities

Immediate annuities pay out very quickly after you invest your initial sum of money, while deferred annuities only pay out years later. Variable annuities have significantly more risk but may offer higher returns.

You may choose an annuity that provides you with income  for as long as you are  alive, or for a specified period. Check the fine print for a guarantee that the annuity will help you stay financially afloat in your golden years. You should also check if the annuity gives your beneficiaries a lump sum once you die, if that is important to you. Being strict about what you invest in can help you grow your income as you age.

Know Your Goals

According to Forbes, many companies may encourage you to buy additional options besides your annuity. You should consider annuities as the steady foundation of your retirement, providing the baseline of money you will need in this scenario. It’s important to assess whether you want those add-ons, as ultimately you would be diverting money that would otherwise go toward your annuity.

Weigh Your Retirement Annuity Options Carefully

As you evaluate potential investment decisions, it’s essential to have a comprehensive understanding of the terms and potential income growth associated with annuities. When selecting where to invest your funds, be sure you also have a firm grasp of the implications of your agreements. Failing to comprehend the details or receiving ambiguous responses from the investment company should serve as warning signs, as they indicate the potential risk of financial loss rather than gain. Therefore, diligent research and obtaining transparent information are vital to ensure your investments align with your financial objectives and pave the way for successful wealth accumulation.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.