It can be frustrating when you max out your contribution to your 401k or IRA. One of the greatest benefits to an annuity is that there are no limits on how much you can put away. You can contribute as much or as little as you want to.
2. Defer paying taxes on the money you save
Another benefit of an annuity is that you can defer paying taxes on the money you save until such time as you will receive the income payments from the annuity. Only when you are receiving income payments from the annuity will you be taxed.
3. Depending on the type of annuity you choose, invested monies can earn compounded interest
Fixed annuities usually exceed the interest rates of a run-of-the-mill savings account, but the interest rate may not always keep up with inflation. Contrastingly, Variable and Indexed annuities are based on the behavior of the stock market, so there is greater potential to earn higher returns on your investment.
4. When the annuity period is over, you can cash out…OR
You can receive the annuity cash value in a lump sum, if you want, or you can enjoy the nest egg and make periodic withdrawal as you need to. No matter how you plan to use the money when your annuity period expires, an additional benefit to your annuity is that any withdrawals or lump sums will be taxed as ordinary income, as opposed to being taxed as “capital gains.”
5. You can also set up guaranteed payments for a specified period or for the rest of your life!
Many people choose to set up their annuity payout to be received as regular monthly income payments for themselves. Some people also choose to bequeath their annuity to their loved ones upon their own passing. At any rate, AIM Inc. has thousands of happy clients who are earning high interest on their annuity investment accounts. Make your money work for you and give AIM Inc. a call today: 909-985-3659