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Frequently Asked Questions
A fixed annuity offers a guaranteed interest rate for a specified period of time, while a variable annuity offers the opportunity for higher returns through investments in a range of sub-accounts.
Annuities offer tax-deferred growth, meaning that you won’t owe taxes on the earnings until you make withdrawals. However, withdrawals are subject to income tax, and there may be additional penalties for early withdrawals.
An annuity can be a good option if you’re looking for a reliable source of income in retirement. However, it’s important to consider your overall financial plan and to evaluate the specific terms of any annuity you’re considering.
Yes, you can use funds from an IRA or 401(k) to purchase an annuity. However, it’s important to understand the tax implications of doing so.
Annuities are typically backed by state insurance guarantees, which offer protection in the event that the insurance company becomes insolvent. However, it’s important to check the specific guarantees offered by the insurance company.
Look for annuity specialists who are licensed and registered with state insurance departments. You can also check for reviews and ratings online to get a sense of their reputation.
In some cases, you may be able to make changes to your annuity contract after purchase. However, these changes may be subject to fees or other restrictions, so it’s important to understand the terms of your contract before making any changes.
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