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Annuities are resources that you can use for a more stable financial future. When used appropriately, annuities provide incredible value for buyers. In addition to financial stability, buyers will feel secure knowing that they can be financially cared for as they live out the rest of their lives.

When not used appropriately, however, annuities can have the opposite effect on your financial future, becoming more of a road block than a support system. This happens when resources are not allotted properly, which happens more often than it should. Ask yourself these 3 questions before you decide to pursue the annuity route:

What is an annuity?

An annuity is a contract between a person and 3rd party (which more often than not is an insurance company). The relationship between the two parties is that the buyer will provide the insurance company with a payment and they, in return, are obligated to:

  • send income for either a designated period of time or for life
  • provide asset growth
  • accommodate benefits in the event of death

There are two types of annuities: fixed and variable. Fixed annuities allow a person to start receiving income as soon as possible or after a certain period of time passes. As explained in the name, the principal amount is fixed. Variable annuities are riskier, but they offer various other benefits as a result. The principal varies depending on the performance of your annuity.

How do you know if you need an annuity?

First, you need to determine your goals so that you can begin researching the annuity options that would serve your specific needs. Next, I would recommend exploring other investment options that are not annuity-related as well. After investigating all of your available options, you can then compare choices and discover which preference would be most cost-effective for you.

How can you be sure that you are choosing the best annuity for you?

This is where working with a professional becomes imperative for your future. It is unlikely and inconceivable that you would know the ins and outs of annuities unless you already have previous experience working with them. Talk to a qualified finance professional about your needs and goals so that they can set you up with the course of action that will provide you with the most long-term benefits.

For all your annuity questions and concerns, contact Jan Gleisner. His firm’s primary purpose is to work with individuals to help them be more financially independent, as well as to set them up for a prosperous life after retirement.

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THE INFORMATION ON THIS WEBSITE IS NOT AN OFFER TO SELL OR SOLICITATION OF ANY KIND OF INSURANCE (FIXED PRODUCTS). PRODUCTS AND SERVICES REFERENCED ARE OFFERED AND SOLD ONLY BY APPROPRIATE APPOINTED AND LICENSED AGENTS. THE MATERIAL HAS BEEN PREPARED FOR INFORMATIONAL AND EDUCATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO PROVIDE, AND SHOULD NOT BE RELIED UPON FOR ACCOUNTING, LEGAL, TAX OR INVESTMENT ADVICE. PLEASE CONSULT A PROFESSIONAL WITH AN EXPERTISE IN THESE AREAS REGARDING THE APPLICABILITY OF THE INFORMATION PERTAINING TO YOUR SITUATION. BY RESPONDING TO ANY INFORMATION YOU MIGHT FIND INTERESTING, YOU AGREE TO BE CONTACTED BY A LICENSED INSURANCE AGENT REGARDING RETIREMENT INCOME PLANNING AND/OR LIFE INSURANCE PLANNING. PERCENTAGES REFER TO EITHER FIXED OR INDEXED ANNUITY CREDITING RATES OR LIFE TIME INCOME WITHDRAWAL AMOUNT BASED UPON YOUR INITIAL PREMIUM AND MAY ALLOW THE OWNER OF AN ANNUITY TO WITHDRAW UP TO A CERTAIN PERCENTAGE OF THEIR INITIAL PREMIUM PER YEAR FOR THEIR LIFE TIME. THIS WITHDRAWAL RATE MAY NOT BE AVAILABLE FOR ALL APPLICANTS AND CAN VARY BASED UPON YOUR AGE, STATE, THE START DATE OF YOUR LIFETIME INCOME, AND OTHER FACTORS. PERCENTAGES CAN ALSO REFER TO POTENTIAL CREDITING RATES FOR AN INDEXED LIFE INSURANCE POLICY. NOT ALL PRODUCTS AND SERVICES ARE AVAILABLE IN ALL STATES. CARMEL VALLEY INSURANCE, INC. IS LICENSED IN THE FOLLOWING STATE: CA. CALIFORNIA LICENSE # 0G89325. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. NOT INSURED BY ANY STATE OR FEDERAL AGENCY.

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