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  2. Jan 11, 2024 · By Catherine Brock – Updated Jan 11, 2024 at 3:04PM. Retirement annuities provide guaranteed income in your senior years. That may sound like a solution you need -- particularly if you don't know...

  3. May 4, 2022 · To avoid making this mistake, we’re going to do what is rarely done: Explain in simple terms the pros and cons of annuities, and who they are best suited for—so you can decide if one is right for you…before you buy. What are annuities and why are they appealing?

    • Fixed annuities offer high rates but come with some catches. A fixed annuity is simple. The amount of income you receive is based on a predetermined rate which usually corresponds with a term.
    • Variable annuities offer market exposure but often have high costs. Variable annuities help your income keep pace with inflation better than fixed annuities.
    • Annuities offer tax deferral but without upfront deductions or tax-free growth. If you are someone who pays a lot of taxes, you can use an annuity to create a tax-deferred investment and reduce your liability.
  4. Apr 19, 2024 · Annuities can provide lifelong income. Taxes on deferred annuities are only due upon the withdrawal of funds. Fixed annuities guarantee a rate of return, which translates into a steady income ...

  5. Dec 11, 2023 · Updated on December 11, 2023. Written by Derek Silva, CEPF®. Edited by Mike Obel. Reviewed by Brandon Renfro, CFP®. Putting away money for retirement can be an arduous process. Once you figure out how much you need to save to retire, the real planning begins.

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