What You Need to Know About
Annuities
What Is an Annuity?
An annuity is a financial product designed to provide a steady stream of income, typically used for retirement planning. You make a lump-sum payment or a series of payments to an insurance company, and in return, the insurer agrees to make regular payments to you either immediately or at a future date. This is an especially great option for individuals with a 401(k), 403(b), or another retirement account that is no longer being contributed to.
Annuities come in various forms—such as fixed, indexed, or variable—offering different levels of risk and return. They can be structured to pay income for a set number of years or for the rest of your life, helping ensure you don’t outlive your savings. Mountaineer Health and Life Insurance specializes in Fixed Annuities. We help you understand how annuities can fit into your retirement strategy and provide peace of mind for your financial future.
Types of Fixed Annuities
Fixed annuities are a popular option for individuals seeking guaranteed income and protection from market volatility. There are several types of fixed annuities, each designed to meet different retirement income needs:
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Traditional Fixed Annuities – Offer a guaranteed interest rate for a set period, making them a safe and predictable option for conservative savers.
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Multi-Year Guaranteed Annuities (MYGAs) – Provide a fixed interest rate for multiple years (e.g., 3, 5, or 10 years), ideal for those looking to lock in stable returns over a longer term.
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Immediate Fixed Annuities – Begin paying income almost right away, typically within a year of purchase, and are often used by retirees who need a steady income stream now.
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Deferred Fixed Annuities – Accumulate interest over time before starting payouts in the future, offering a way to grow savings tax-deferred while planning for long-term income.
At Mountaineer Health and Life Insurance, we can help you determine which type of fixed annuity best supports your retirement and income goals.
Who Should Consider an Annuity?
An annuity can be a smart option for individuals who want to create a reliable income stream in retirement and protect themselves from the risk of outliving their savings. It’s especially beneficial for those nearing retirement who have already maxed out other tax-advantaged savings accounts like IRAs or 401(k)s. People who prefer low-risk, predictable income or are looking for ways to supplement Social Security or pension payments often find annuities appealing. They’re also ideal for individuals who want to grow their money tax-deferred while planning for long-term financial security. If you’re looking for guaranteed income and peace of mind in retirement, Mountaineer Health and Life Insurance can help you explore whether an annuity is the right fit for your goals.
Can I Transfer an Old Retirement Account into an Annuity?
Yes, you can transfer an old retirement account, such as a 401(k) or an IRA, into an annuity through a process called a rollover. This allows you to move your retirement savings into an annuity without triggering taxes or penalties, as long as it’s done correctly through a qualified custodian. A rollover can help you convert your lump-sum retirement savings into a steady income stream, providing you with predictable payouts in retirement. It’s important to choose the right type of annuity to match your financial goals, as different annuities offer varying features, such as fixed or variable interest rates and payout structures. If you’re considering rolling over your retirement account into an annuity, our team at Mountaineer Health and Life Insurance can guide you through the process and help you make an informed decision.
Accumulation vs. Income: Which Annuity Is Right For Me?
When considering an annuity, it’s important to understand the difference between accumulation and income annuities to determine which is right for you.
Accumulation annuities are designed to help you grow your savings over time, often with tax-deferred growth, and are ideal for individuals who want to build wealth for future use, such as for retirement.
Income annuities, on the other hand, are structured to provide you with a guaranteed, regular stream of income, either immediately or at a future date, making them a good choice for those who want to secure a stable source of funds in retirement.
If your goal is to grow your savings for the long-term, an accumulation annuity might be best. But if you’re nearing retirement or want predictable income for life, an income annuity could be the better option. At Mountaineer Health and Life Insurance, we’re here to help you assess your needs and choose the right type of annuity to meet your financial goals.
Let Us Help at No Cost!
We’re here to walk you through the process step by step, answer your questions along the way, and help you understand all of your options in a way that actually makes sense. Our goal is to make things simple, clear, and stress-free—so you can feel confident about the choices you’re making.