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The Best Guaranteed Income Stream

I’ve got not just one but TWO videos for you today covering what an annuity actually is and why you might want one. Things can get confusing quickly, so laying out the groundwork is helpful when getting started.

What Is An Annuity?

Let’s kick it off first with a recap. Annuities are basically a guaranteed income stream, usually for retirees, issued by insurance companies. They are considered insurance products as such, they fall under the IRS tax codes that provide tax deferral. They have been used for centuries as a way to mitigate taxes and provide tax deferred compound growth. It’s important to note that today’s annuities are not those of your grandfather or father. Post WWII, taxes were much higher than they are today, and there were no IRAs or 401ks until the 1980s. This means that people typically used annuities (as well as other insurance products – which we’ll touch on in part two) as a way of getting a tax deferral on their money. Things are a little bit different nowadays and as time went by, annuities evolved. Basically, people don’t want to lose control of their money, and there are multiple ways to plan to make sure that doesn’t happen. And in Episode 57 below, I’m diving into how to start creating your annuity strategy and ways you might want to consider using an annuity.

 

Four Types Of Annuities

 If you need a little bit more of a deeper dive into what annuities are, then we need to start first by understanding the four types of annuities.

And in Episode 58 below, we’re covering the 4 types of annuities you should know about, including: 

  • Fixed
  • Indexed
  • SPIAs
  • Variable

Most people want to make sure they are leaving money for their children. But if you are a DINK (double income, no kids) or a SINK (single income, no kids) your priorities are different. The goal here is to figure out what your game plan is, and how you will get your income down and not leave too much behind. We’ll chat about which annuity is right for you based on your life situations.