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Annuities Morehead City, NC 

At Good Life Financial Advisors of Morehead City, NC, our mission is to help you work toward financial freedom with strategic planning solutions, like annuities

Proactive guidance is paramount when working toward financial goals that serve your best interest. And while annuities have many benefits, knowing exactly what they entail is essential in deciding if they are the best option for you. Here’s what you need to know. 

What Is an Annuity?

An annuity is a financial product that provides regular payments to an individual over a set period of time. Annuities are often used as a form of retirement income, but they can also provide a steady stream of income for other purposes. 

Annuities work by an individual or organization making a lump-sum payment to an insurance company or other financial institution in exchange for guaranteed regular payments. The payments can be made for a set period or the annuity holder’s lifetime. The amount of the regular payments are based on several factors, including the initial lump-sum payment, the length of the annuity, and the interest rate at the time of purchase. 

Types of Annuities

There are several types of annuities, including fixed annuities, variable annuities, and indexed annuities. Fixed annuities offer a fixed rate of return and are considered low-risk investments. Variable annuities are riskier because the value of the payments can fluctuate depending on the performance of the underlying investments. Finally, indexed annuities are a hybrid of fixed and variable annuities, where the return is based on the performance of a specific market index. 

How Can Annuities Benefit Me?

Annuities can be a valuable tool for retirement planning, as they provide a guaranteed source of income during retirement. However, they also have drawbacks, including high fees, limited liquidity, and potential tax implications. Therefore, it’s essential to carefully consider all the factors before purchasing an annuity to ensure it aligns with your financial goals and needs. 

Here are some advantages of annuities: 

  • Lifetime Payments: Buyers of annuities often fear running out of cash before they die and wish to lock in a steady income stream. By securing a lifetime string of payments, annuity buyers gain peace of mind over financial matters.
  • Lack of Risk: Fixed annuities do not expose any principal to market risk, so buyers don’t need to worry about losing money. Indexed annuities also have protections from market risk in place. In addition, some variable annuities can be adjusted to limit downside risk. As a result, annuities are considered one of the safest forms of retirement savings.
  • Purchasing Options: Annuities are sold by many different financial institutions, including insurance companies, brokerage firms, and banks. This makes it easier to find a product with an institution you have a pre-existing relationship with. 

Am I a Good Candidate?

Annuities aren’t for everyone. An annuity likely doesn’t make much sense if you’re young or not averse to risk. Remember, these products are more like insurance than investments, so choose a market-based vehicle if your time horizon is long enough. However, an annuity is still an excellent choice for some people. Maybe you’ve maxed out your 401(k) and IRA, or you could be a conservative saver who can’t stomach the risk of capital markets. Either way, consult a financial advisor before buying any investment product, especially one that requires money to be tied up like an annuity. 

Schedule Your Complimentary Discovery Call

We hope you enjoyed learning about the benefits of annuities. If you believe you are a good candidate or have questions, our team is here to help! At Good Life Financial Advisors of Morehead City, we believe in empowering our clients with education and resources so that they can feel confident about their financial future. 

To learn more about annuities, contact us today to schedule a complimentary Discovery Call. This meeting is a no-obligation consultation to discuss your current life circumstances, financial situation, and long-term goals. It is also an opportunity for you to learn more about us and determine whether you feel comfortable moving forward with our team of financial professionals. 

If you’re ready to discover the Good Life, contact us today to schedule your free consultation. We hope to help you soon!

Disclosures - Equity Indexed Annuities (EIAs) are not suitable for all investors. EIAs permit investors to participate in only a stated percentage of an increase in an index (participation rate) and may impose a maximum annual account value percentage increase. EIAs typically do not allow for participation in dividends accumulated on the securities represented by the index. Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Withdrawals prior to 59 ½ may result in an IRS penalty, and surrender charges may apply. Guarantees are based on the claims paying ability of the issuing insurance company. 

Fixed and Variable Annuities – Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.