Annuities in Fort Worth, TX
Annuities are financial products that can offer a means of securing a steady income during retirement. These instruments establish contractual agreements between an individual and an insurance company, where the individual makes a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments at a point in the future.
How Annuities Work
An annuity plan typically converts a substantial lump sum or series of payments into a steady stream of future income. When you purchase an annuity, you essentially buy a promise from the insurance company to pay you a certain amount of money for a specified period. The payout period could be a certain number of years (short-term annuity) or for the rest of your life (retirement annuity).
Types of Annuities 
There are several types of annuities, although the two most common are fixed and variable.
- A fixed annuity can provide a guaranteed interest rate and secure future income regardless of market conditions.
- A variable annuity may offer more significant growth potential as values fluctuate depending on market performance.
Indexed annuities may also be an appealing option, as these investments are tied to a specific market index, such as the S&P 500. They generally provide greater potential than fixed annuities and are less risky than variable investments.
How Do Annuities Pay Out?
Annuities generally pay out in one of two ways. With an immediate annuity, you can begin to receive payments right away. With a deferred annuity, your money typically grows tax-deferred until you choose to receive income, which can be a valuable tool for retirement planning.
We’re Here to Help
Annuities have many benefits, including tax-deferred growth, a guaranteed death benefit, and the option for a steady stream of income that you can’t outlive. However, while these financial instruments may be appealing, they can also be complicated. With this in mind, the dedicated team at Cornerstone Independent Insurance Agency LLC is standing by to assist. Contact us today to buy an annuity or learn more about your investment opportunities.