Top Benefits Of Putting Money Into An Annuity
If you have been looking at a few different ways to save money for your future, you might want to consider the benefits of an annuity. To help you with this, you will want to take a look at the following benefits. This way, you will have a much easier time making the best decision for your specific situation.
No Maximum Limits On Contributions
For anyone that has the desire to truly save as much money as they can for their retirement, an annuity might be the best way to go. This is because there is no cap on the amount of money you can contribute to it each year. This is a main benefit that sets it apart from something such as the 401k. Whether you are in your early twenties or quickly approaching retirement and feel the need to catch up on your retirement savings, this might be the best way to do it.
The Money Is Not Taxable At The Moment
All of the money that you put into your annuity is not subject to taxes right away. This means that your money gets to work for you, compounding interest while it is in the annuity, without Uncle Sam being able to touch it. In the end, you are able to save a lot more this way. After all, your tax filing status and what you are subject to pay out once you cash out your annuity may be a lot different when you retire than it would be now, which means you can save yourself a lot of money.
Cash Out Options
Another major benefit of the annuity is that you have two options to pick from when it comes time to cash out. You can opt to take a lump sum payment. Then again, you might prefer the small payments so that you have more of a steady stream of cash coming to you, which might make budgeting your expenses a little easier. In the end, it boils down to how you want to spend your retirement money and how fast you need it, but it is still nice to have the two different options.
As you can see, there are some great benefits that will come from having an annuity set up. All you have to do now is to decide if it is the right decision for you and get the paperwork started. You will be well on your way to retiring comfortably before you know it. Contact a company like Get My Insurance Today for more information.
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