Annuities provide a strategic approach to securing your financial future.

Which type of annuity is an investment for you?

What are the risks involved?

Should you invest in an annuity?

Whether annuities are suitable for you and the level of risk that is appropriate will depend on your financial circumstances. It is essential to thoroughly evaluate the tax implications, especially if you are considering early retirement.

Are you contemplating an investment in an annuity? Please contact us to explore your options.

How do annuities work?

Available in fixed and variable options.

The second risk is applicable only to certain types of annuities. You may encounter annuities that provide a fixed payout, which is often determined by variables such as your age, gender, and health status at the time of purchase. Conversely, there are variable annuities where the insurer allocates your funds for investment purposes; thus, the returns you receive are contingent upon the investment performance. To mitigate this particular risk, one may consider the option of an index-linked annuity as a balanced alternative. Below are examples of the various types of annuities:

• Immediate annuities offer a guaranteed lifetime payout starting immediately.

• Deferred annuities ensure a guaranteed income at a predetermined future date.

• Fixed annuities are characterized by predetermined guaranteed interest rates.

• Variable annuities allow individuals to invest funds in alternative accounts.