Annuities

Planning for your future should include giving ample attention to your financial situation and security. After all, adequate monetary resources are essential if you hope to retire and maintain your quality of life or pursue future dreams and aspirations. With this in mind, various financial instruments, such as annuities, may provide lucrative opportunities. 

What Is an Annuity? 

Annuities are contracts often sold by insurance companies and financial institutions. They can act as an investment for your future to ensure that you can support yourself with a reliable and consistent source of income even after retirement. Furthermore, annuities may include various tax advantages, such as earnings not being taxable until you choose to withdraw funds. 

How Do Annuities Work? 

By purchasing annuities, you are making investments to establish financial security for you and your family in the future. While there are many types of annuities and their details may vary, they often allow your investment to grow and eventually provide a revenue stream. Although annuities are generally used for retirement purposes, you can utilize them for other situations, such as to help pay for funeral arrangements and other final expenses. 

Types of Annuities 

To understand your ideal annuity, you should work with a qualified financial professional, such as those at The Rice Insurance & Financial Group. When assessing your circumstances and identifying optimal options, consider the following: 

• A fixed annuity can provide you and your family with low-risk investments that will not lose value over time. These contracts guarantee the principal of your investment and a minimum rate of interest.  
• A variable annuity may allow you to grow your investments more aggressively. Market conditions directly affect this type of annuity, and their value may increase or decrease accordingly. 
• An immediate annuity generally includes an initial lump-sum investment that you can convert into an ongoing income source within the first year after being purchased.  

Annuities Explained 

At The Rice Insurance & Financial Group, our team has extensive experience helping individuals, families and businesses in the Midlothian, Virginia, area secure their financial futures. Contact us today to get started.