Important things to know about Annuities
When looking ahead at retirement and considering your financial security later in life, you will likely consider and research different investment vehicles like Individual Retirement Accounts and 401(k) plans. Another option you may want to better understand is an annuity.
Using the free *Native American Financial Services Association (NAFSA) Financial Literacy Program, you can explore online playlists with many modules that relate to overall financial competency, whether this is understanding checking accounts or estate planning, our curated playlists will provide you with important information.
Annuities:
An annuity is a contract between you and an insurance company where you make a lump-sum payment or series of payments and in return, receive regular disbursements, either immediately or in the future. Buying annuities can ensure you have regular income and be a valuable tool as you move into retirement.
Like other types of investment vehicles, there are different types of annuities, immediate and deferred. As the name might suggest, an immediate annuity is one that starts making payments, or disbursements, right after it is set up. This is best for individuals who want to receive these payments right away. A deferred annuity is one that starts only after a period of specified time and after the final purchase premium has been paid. This is often best for individuals who are still saving for the future. It is important to understand the specifics of each type of annuity and choose the option best suited for your needs.
Our Annuities module, located in the Preparing for Retirement playlist helps you understand how annuities can help you reach your retirement savings goals, tips to maximize your investment income, and important FAQs before purchasing an annuity. This module also includes an easy-to-use retirement savings calculator. Annuities may seem daunting at first but can be a great tool in your investment toolkit.
The NAFSA Financial Literacy Program provides a variety of modules and tools with easy-to-understand information to help people better comprehend their finances and make more informed decisions.
Explore the program today: https://nafsa.everfi-next.net/welcome/nafsa-achieve
*The NAFSA Financial Literacy Program content contained on the NAFSA web page(s) referenced above, and on any subsequent pages created by our service providers/partners, provides general consumer information. It is not legal advice or regulatory guidance. There may be other resources that also serve your needs and you are always encouraged to, and should, consult with your own professional advisors prior to making any financial decisions.
