What’s the one day that sends many Americans on a treasure hunt through drawers and other files to find receipts that’ll reduce their tax burden? That’s right: It’s Tax Day!
Now that your taxes are done for this year (hopefully!) we wanted to remind you of one way to grow your income, tax-deferred.
Annuities offer many advantages to help you build financial security:
- Your principal is always protected from market risk even if the market fails to have positive gains.
- Earnings accumulate on an income-tax-deferred basis to grow your retirement fund faster.
- You can choose from a variety of payout options, including a secure and steady income stream you can’t outlive.
Because one size does not fit all, there are several different types of annuities to choose from:
Fixed interest annuity
This product is designed to help you accumulate funds for your retirement. The money in your annuity earns a guaranteed fixed rate of interest and your money accumulates on a tax-deferred basis, meaning you do not pay taxes on your earnings until you actually withdraw them from your policy.
Fixed indexed annuity:
A fixed indexed annuity provides the guarantees that come with fixed annuities but is combined with the opportunity to earn interest based on changes in an external market index. Because you are not actually participating in the market, the money in your annuity is not at market risk.
An immediate annuity is purchased with a single lump-sum payment and, in exchange, pays a guaranteed income stream that starts almost immediately.
Your Bankers Life insurance agent can educate you about annuities, explain your options and help you determine whether one is right for you.