When you purchase a fixed indexed annuity as part of your retirement plan, you enter into a contract with the issuing insurance company. During the accumulation phase, when you’re able to add funds, your funds can grow on a tax-deferred basis. When you’re ready to turn your annuity into a stream of cash, you’ll have various payout options to choose from.
Funds invested in retirement annuities grow tax-deferred. When you’re ready to start drawing on your annuity, you “annuitize" the contract and turn it into an income stream so you receive a series of regular payments each month, quarter, or year.
The most common reason many people use annuities is for channeling their savings into a regular INCOME STREAM THAT CAN BE GUARANTEED FOR LIFE DURING RETIREMENT.
Funds from Social Security and pensions may not be enough to allow you to live the lifestyle you want when you retire. Choosing a retirement protection annuity can give you an additional paycheck every month to supplement those other income sources – giving you the funds necessary to travel, pay your expenses each month, buy gifts for loved ones and more.