An annuity is an investment option that is structured to obtain and grow cash over a specified period of time. Once the annuity hits its maturity date, the investor will start receiving monthly payments, which can be looked at as a replacement salary during retirement.
There are two types of annuities to consider:
- Immediate: This option is opened with a lump sum and starts paying right away, or immediately. The benefit of choosing this option over keeping your investment in savings is that it keeps the money safe and secure, and is distributed evenly over a period of time.
- Indexed: This annuity is built by contributing a lump sum or monthly/annual payments for a certain amount of time. The benefit of this particular option is that the funds are exposed to the market and the investor can take advantage of the upswings in the market without being subjected to downward risk.
Kagan Financial can cater to a variety of needs. Let our experts guide you to the annuity that is right for you. Contact us today.