Annuities can be an excellent addition to your financial and retirement portfolio, but it’s essential to determine whether they’re the right fit for you and your financial goals. Here are some ways to know if annuities are right for your financial portfolio.
If you’re looking for a guaranteed income stream to supplement your retirement income, annuities can be a good option. However, if your retirement goals involve greater wealth growth or higher levels of liquidity, annuities may not be the best fit. It’s important to note that all guarantees are subject to the claims-paying ability of the insurer. Guarantees apply to minimum income from annuities and do not guarantee an investment return. Lifetime benefits are often an additional rider.
Ensure that your risk tolerance matches that of the annuities available to you. Annuities are generally considered low-risk investments. If you’re someone who is risk-averse and prefers a predictable income stream, annuities can be a good fit. However, if you’re in a situation where taking on more risk can help your retirement funds more, annuities may not be the best option.
Some types of annuities can provide tax-deferred growth, meaning you won’t pay taxes on your earnings until you withdraw them. If you’re looking for a tax-efficient way to save for retirement, annuities can be a good option. However, if you’re in a low tax bracket and won’t benefit from the tax-deferred growth, annuities may not address your tax concerns.
Make sure to evaluate the fees and charges. Annuities and their customized components can come with fees and charges that may not fit your financial situation. Make sure you understand the fees and charges associated with the annuity before investing. If the fees and charges are too high, it may not be worth it.
Annuities can be a wonderful retirement income solution for some, but it depends on what your financial goals are and what kind of annuity you end up purchasing.
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Annuities may be a key part of your financial picture, if you have questions about if annuities can work for you, contact us at (540) 720-5656 to get started with a financial professional.
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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.
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. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
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.
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.
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. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.