Annuities allow you to have peace of mind when it comes to your future income. You won’t have to rely on a retirement account that only decreases as you make withdrawals. But you may wonder when it’s the best time to buy. In this case, there’s no time like the present.
Why Now?
Right now, you are more capable of building greater savings than ever before. It’s never too early to plan for the future, no matter how close or distant.
And it’s not just the amount you’ll be able to contribute with the funds you set aside after getting your paychecks. Annuities allow your investment to gain interest, and if you choose an annuity such as a variable or indexed, you can also benefit from a thriving economy.
Traditional savings accounts don’t offer the same growth potential. Your savings may actually decrease in value as inflation rises. Annuities allow you to keep up with the times – your dollar will go further, and future economic conditions will not affect what you can afford when the time comes. You can even get a cost of living adjustment rider to your annuity to combat inflation.
When Is The Best Time To Buy An Immediate Annuity?
Whether an immediate annuity or deferred annuity is the better purchase depends on what your “now” is.
An immediate annuity is best if you are older and close to retirement age. Here, you’d pay a lump sum in exchange for continuous payments. At this age, you need your funds to be accessible as soon as possible. If you choose a deferred annuity, you won’t be able to withdraw from your account without incurring surrender charges, which are penalties you’ll pay on top of the taxes for the funds you’ve withdrawn.
When Is The Best Time To Buy A Deferred Annuity?
Deferred annuities are ideal if you are younger and are several years away from retirement. At a younger age, you’re also less likely to have the large lump sum that would grant you immediate, routine payments.
There are two phases – accumulation and payout. The younger you are, the more you’ll be able to get out of the accumulation phase. You can contribute as much as you’re able to during this time and with pre-tax income if you prefer to pay taxes when your funds are disbursed later. Interest and market growth create a snowball effect – they start small, but as the years go by, you will amass a level of income that your savings alone couldn’t accomplish.
We’ll Get You Started Right Away
At Jersey Medicare Solutions, we value making the most of the present moment. We will assist you in getting the best annuity no matter where you are in life. With our help, you will be on your way to a future in which you can live comfortably with a guaranteed income source. When you get an annuity, you make your money work for you – not the other way around. Call us today at 973-500-3708.
Thomas M. Brzezinski is one of the founding partners of WMAG William & Michael Advisor Group LLC and Jersey Insurance Solutions. He has been involved in the insurance industry for over ten years and specializes in developing client relationships that last a lifetime.
