According to Annuity.org, there are multiple reasons Americans are investing billions into annuities.
There’s much talk around annuities regarding retirement planning, which leaves the conversation open to a lot of questions and potential misunderstandings. Be prepared that selecting to have an annuity in your portfolio should only happen after an informed discussion with your financial or insurance professional.
Ever wonder why so many Americans have purchased annuities? Check these four reasons:
- Guaranteed Income for Life – When you purchase an annuity, you can set up part of your retirement savings as a stream of payments that are guaranteed by the insurance company that issues it. Receiving this income for the remainder of your lifetime ensures you don’t outlive your money.
- Tax-Deferred Growth – We’re pretty sure that no one likes paying taxes, but we all have to do it at some point. With an annuity your money grows tax-free until you withdrawal it, including any investments, dividends and interest. So even though you have to pay the tax, you’re growing your nest egg simultaneously.
- Long-Term Care (LTC) Benefits – There could be a time in your future when LTC services are needed, and it’s no surprise that these costs can go beyond what you had planned. If you invested in an annuity with an optional rider, you might be able to use the income for long-term care coverage or transfer money from your annuity to a LTC policy’s premium.
- Immediate Income Options – Investing for the long-term doesn’t always work, so this is where a single premium income annuity (SPIA) provides a more timely payout since they’re annuitized almost immediately. Income annuities are intended to provide guaranteed income, not help you accumulate retirement savings, so talk through your options before making your selection.
If you search online, you’ll discover a plethora of opinions and frequently asked questions regarding annuities. This is a good indicator that choosing this investment option shouldn’t be done without due diligence and at the guidance of a knowledgeable financial or insurance professional.
Creating a retirement strategy takes work and is probably best done with the help of an industry expert – be it a financial professional or a licensed insurance agent. If you’re interested in annuities, call us at (540) 720-5656 and we’ll help guide you in the right direction.
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter.