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Ready, get set, earn! Preparing for your financial future includes looking for ways to ensure you’ll have the income you need throughout your retirement years.
Fixed Annuities offer a fixed interest rate ensuring your account will grow at a steady rate. To ensure you have the flexibility you need, we offer multiple options for the length of the contract.
With annuities, you can accumulate earnings on a tax-deferred basis which means you don’t pay income tax on your earnings until your money is withdrawn, which typically happens at retirement, when your tax bracket may be lower. This can allow the value of your annuity to grow more quickly than a taxable investment earning the same return.
When it comes to receiving income, if you choose to you can start receiving an annuity income stream upon reaching age 59 ½ (any earlier and you’ll be charged penalties). When you’re ready to receive your annuity income stream, you can receive payments monthly, quarterly, annually, etc.¹ – whatever is best for your situation. You can also decide on how you want to structure your annuity income stream. Do you want an income stream for: a certain number of years, in a certain dollar amount or as long as either you or your spouse are alive? Talk to your Farm Bureau agent to see which structure is right for you.
If you die before your annuity payout begins, your beneficiaries will receive the accumulated value of the annuity. Death proceeds are paid directly to your beneficiaries, so there should be fewer costs or delays in receiving the proceeds. Funds received may be subject to income tax.
Annuities are often just one component of a strong retirement strategy. I can be a valuable resource when it comes to choosing an annuity as part of your overall approach.