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ANNUITIES

An Annuity is a financial product offered by an insurance company and sold to an individual to guarantee a stream of income for a specified period of time or for the remainder one's life.

 

Individuals typically use annuities as part of their retirement income and to address the risk of outliving their savings. An annuity can be purchased by making monthly premium payments for a future or deferred time (such as retirement), and by making a lump-sum investment for an immediate income stream.    


Annuities come in various types based on how they are structured.

BRIEF OVERVIEW:*

1

FIXED ANNUITIES

  • Fixed interest investments with guaranteed rates of return.

  • Can be deferred or paid out immediately.​

  • Popular with retirees or pre-retirees.

2

IMMEDIATE ANNUITIES

  • Begins paying out immediately after a lump sum is deposited.​

  • Popular with those wanting a steady stream of incme (like a pay check) after leaving the workforce.

3

DEFERRED ANNUITIES

  • Payments begin in the future.​

  • Popular with those wanting a steady stream of incme (like a pay check) once retired.

4

VARIABLE ANNUITIES

  • Can be immediate or deferred.

  • Payments vary based on the performance of the underlying investments (mutual funds, stocks, bonds).

  • Considered a higher risk annuity due to market fluctuations, but liked for the potential for higher returns.

5

INDEXED ANNUITIES

  • Can be immediate or deferred.

  • Returns are tied to a market index (e.g., S&P 500) but have a guaranteed minimum return.​

  • Considered a balance between fixed and variable annuities.

6

SPECIALTY ANNUITY

  • Qualified Longevity Annuity Contract ("QLAC") is a type of deferred income annuity that allows individuals to use money from their qualified retirement accounts to purchase a guaranteed income stream that begins at a later age, typically starting around age 80 or 85.

  • Helps retirees delay taking required minimum distributions from their retirement accounts by deferring income until later. 

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Factors that Affect Payments:

When an annuity is annuitized (that is, taking the savings you have in your annuity and converting that amount into a series of payments), there are several factors that affect your monthly payment amount:

  • Age: The older you are when you start receiving payments, the larger those payments will be.

  • Gender: Payments to men may be larger than payments to women because statistically women live longer.

  • Type of Annuity: The type of annuity you purchase affects your potential monthly income. For example, a payout for a period certain such as 10 or 20 years, versus a payout for the rest of your life.

  • Frequency of Payments:  Payments can be monthly, quarterly or annually.

  • Insurance company: Annuities are contracts entered into with an insurance company.  That company's expected investment returns on your money affects your monthly payment.​

We will help you navigate each of these factors.

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Contact Us for a Conversation

We will help you determine which annuity is best suited to you.

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Direct:  (904) 884-0277

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Email:  Barbara@TheC3Agency.com

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The C3 Agency services the needs of individuals throughout the State of Florida.  We are located in beautiful NE Florida.  Home of the Jacksonville Jaguars, TPC Golf Tournament, PGA Headquarters and vibrant corporate offices, beautiful beaches, parks, restaurants, shopping, and communities.

Copyright @2025.  Created by Barbara Shipp.  All rights reserved.

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