Annuities have been available in the United States since 1812.  The concept of providing income for life by pooling all the money contributed by the annuitants and paying money out as long as the annuitant lived dates back to the Roman Empire.  If you die early, you lose.  If you live a long time you win.  It makes sense for Life Insurance Companies to issue annuities because annuities work just like life insurance, except in reverse.  Today, annuities are used not just to provide income but also as an accumulation vehicle to help people save for retirement.  The growth of funds inside an annuity is not subject to current income tax thus allowing for more potential return verses taxable investments.  Innovative plan design allows today’s annuities to offer unique combinations of features including guaranteed income and market participation with market downside protection.  Using an annuity as a part of an overall retirement strategy can indeed help you reach your retirement goals. 

 

At Edgerton Financial, we use only highly rated insurance companies. We will tell you all the costs involved (including the commission structure) and promise to put your best interest first, just as we have for the last 43 years.  Call us if you would like to see how an annuity might fit your particular circumstances.