June is Annuity Awareness Month, a time to educate individuals on the benefits and importance of annuities. If you’re new to annuities or need a refresher, keep reading to understand the basics of annuities.
Basically, an annuity is a financial product that can provide a steady stream of income during retirement. With people living longer and the uncertainty of Social Security, annuities can be a reliable source of income in retirement.
These insurance-based financial products come in different forms, such as fixed, indexed, and variable annuities. Fixed annuities provide a guaranteed rate of return, while indexed annuities offer the potential for higher returns based on the performance of a market index. Variable annuities allow individuals to invest in a variety of mutual funds and other investments, with the potential for higher returns but also higher risk.
One of the primary benefits of annuities is their tax-deferred growth. This means that earnings on the annuity are not taxed until they are withdrawn, allowing individuals to potentially earn more money over time. Annuities can also provide a death benefit to beneficiaries, ensuring that loved ones are taken care of even after the annuity holder passes away.
It is important to note that annuities are not for everyone. They can be complex and often come with fees and surrender charges if money is withdrawn before a certain date. That’s why it is important to fully understand the terms and conditions of an annuity before investing.
Annuity Awareness Month is a great opportunity to educate yourself or talk to a financial professional about the benefits and potential drawbacks of annuities. By increasing your knowledge of these financial products, you can make more informed decisions about your retirement and financial future.
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Annuities can be a great option for retirement given that they can provide you with steady income the way Social Security might. However, annuities can be complex and aren’t for everyone. A regularly maintained, comprehensive retirement strategy can make the difference in fitting annuities into your strategy, so contact one of our financial professionals to get started, (540) 720-5656.
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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.