-3.svg)
Maxed Out Your 401(k) or IRA? Annuities Could Be Your Next Step
If you’ve already contributed the maximum to your retirement accounts and want to save more, annuities offer a powerful, tax-deferred way to grow your wealth and create guaranteed income for life.
.png?width=613&height=418&name=Mask%20group%20(6).png)
What Is an Annuity?
An annuity is a tax-deferred insurance contract designed to provide income during retirement. You invest a lump sum or make ongoing contributions during the accumulation phase, and receive payments later during the distribution phase—often after you retire.
Your annuity is issued by a life insurance company and may include fees such as:
- Mortality and expense charges
- Administrative fees
- Surrender charges (if you withdraw early)
.png)
Why Consider an Annuity?
Tax-deferred growth until you begin withdrawals.
No annual contribution limits—invest as much as you want.
No required distributions at age 72.
Creditor protection in some states.
Probate-free death benefit for your beneficiaries.
Customizable income stream to match your retirement needs.
-1.svg)
Things to Keep in Mind:
Annuities aren’t for everyone. Consider these potential drawbacks:
- Contributions are made with after-tax dollars.
- Early withdrawals may trigger surrender charges and a 10% federal penalty.
- Investment gains are taxed as ordinary income.
- Once annuitized, payment options are typically locked in
- Fees can include management, insurance, and administrative costs.
Shop Smart
Not all annuities are created equal. Rates, fees, and features vary widely.
Be sure to:
- Compare costs and returns
- Choose a reputable, financially sound issuer
- Consult an FSFM Advisor for personalized guidance
Ready to Start Planning?
Lets help you build a retirement strategy that works for your business and your future. Contact us today to explore annuity options tailored to your goals.
-2.png?width=612&height=411&name=AdobeStock_367251886_Preview%201%20(6)-2.png)