Earn fixed, guaranteed income with a retirement annuity plan. With the ability to structure these investments into different kinds of instruments, annuities are a flexible and reliable investment strategy used by many.
Fixed stream payments
Then, later, the investment makes a lump-sum distribution or series of regular distributions to the investor.
How do annuities work?An annuity distributes fixed stream payments to individuals, usually as income for people who are retired. Financial institutions invest funds from individuals and then issue payments at a later date. This was meant to provide consistent income to those who are retired and to eliminate fears of outliving our own assets. Annuities are also created to transfer large sums of money into a steadier cash flow.
Annuities are flexible upon creation, structuring themselves according to a variety of factors. Annuities can distribute payments for the remainder of a retiree’s life or can be used to pay out funds over a specific time.
Those seeking a stable retirement income often buy a retirement annuity.
Deferred income annuities
Allow the individual to receive greater future cash flows if the investments of the fund are successful or smaller payments if not successful.
Distribute periodic, consistent payments. These are considered the type with the lowest risk and are the easiest to understand.
Also called lifetime guaranteed annuities secure income for an entire lifetime. They might not offer immediate access if in an emergency.
Offer tax-deferred benefits that allow investors to skip tax payments until money is taken out.
Once you have determined that an annuity is suitable for you, it can be purchased with your Self-Directed IRA or other retirement account at Mainstar Trust. Click below to discover how to use a Mainstar Trust account to invest in an annuity policy.