Annuities in Saint Marys, PA
Taking steps to ensure your future financial wellness should be a top priority throughout your career. Regardless of when you plan to retire or the lifestyle you hope to enjoy as you age, taking an active approach to saving and securing your finances is essential. Annuities may be among the most effective tools for achieving these goals; however, these arrangements may also be complicated, so you should ensure you fully understand them before committing your hard-earned funds.
How Do Annuities Work?
Annuities can be valuable opportunities to secure savings, ensure your spouse or dependents are cared for or even establish a future revenue stream for yourself. These products generally involve an agreement between you and an insurance provider in which you purchase the annuity now in exchange for the latter agreeing to provide financial installments to you or your loved ones in the future.
How Many Types of Annuities Are There?
To ensure you make the right choices regarding annuities, you should first understand the various types available to you. Although the details of these arrangements may vary, most can generally be classified as one of the following:
- Fixed annuities—These arrangements can serve as safe and low-risk investments for you, as the seller guarantees the principal and a minimum interest rate. You can be assured that your annuity will not lose value over time, although growth may be limited.
- Variable annuities—These agreements may provide more aggressive opportunities for growing your investment, as their value may grow or shrink according to market conditions.
- Equity indexed annuities—This type may provide the best of both worlds if you seek a hybrid between fixed and variable annuities. These annuities include a minimum interest rate while also potentially growing based on the performance of a specific stock index.
- Immediate annuities—These can begin paying you more quickly than other types. They may be a suitable option if you want to secure ongoing income and plan to withdraw money soon after making your initial investment.
How Many Annuities Can I Have?
You may generally invest as much as you wish into annuities and purchase as many as you want. It may be attractive to secure different annuities capable of providing potential growth levels and investment security. For example, you may choose to invest some funds in fixed annuities to ensure that you do not lose your initial principal while also guaranteeing a future source of revenue. Meanwhile, you could also make more aggressive investments in variable annuities to give yourself more opportunities to accrue wealth.
At the Pacelli Insurance, we’re here to help you secure your financial future. Our dedicated agents have the knowledge and experience to assist you in understanding annuities and will work with you to assess your needs, consider your goals and select optimal investments. Contact us today to get started.