Annuities are more simple than you think. An annuity is a form of insurance or investment entitling the investor to a series of annual sums. Typically, a fixed sum of money paid to someone each year, usually for the rest of their life.
Essentially an annuity is when you transfer money to an insurance company and they invest it into very safe funds guaranteeing that at the end of the term, they begin to pay you your payments.
An annuity is a form of insurance or investment entitling the investor to a series of annual sums. Typically, a fixed sum of money paid to someone each year, usually for the rest of their life.
Annuities certainly are not for everyone. In order for your money to make money, it needs to stay invested with the insurance company. Usually for 5-10 years. Of course, you can opt for more time depending on your age and financial needs in the next 5-10 years but somewhere in-between is the most common.
You don’t need a ton of money to invest like the wealthy.
A common misconception is that you need hundreds of thousands or millions of dollars to create an annuity in the first place. While that would be a great problem to have, you can get started investing in an annuity with as little as $10,000.
What is the process for applying for an annuity?
The process is fairly simple. First, you will need to meet with a state-licensed Annuity specialist. Lucky for you our team has completed weeks of additional training just on annuities.
The first meeting you will need to answer a series of questions regarding where the money is coming from and outlining your current income and expenses. You’ll have to show that if an emergency happened the first place you wouldn’t go would be to liquidate your annuity.
Sometimes there are fees if you withdrawal your annuity early but usually no fee if your financial situation is medical related.
Schedule an appointment with one of our state-licensed annuity specialists and we can go over everything you will need to prepare before we meet over the phone.