Stephen Dybwad
Stephen J. Dybwad | Highly Individualized Financial Guidance
A Brief Guide on Investing in an Annuity
You may have heard of annuities and have a general idea of how they work, but do you know how to find the right annuity for your needs? These products can be complex at times; however, by researching and consulting a trusted financial advisor, you will be well on your way to finding an annuity that works for you.Benefits of Investing in an AnnuityThe most attractive benefit of investing in an annuity is having a guaranteed lifetime income. This means that even if you outlive your money, the annuity will continue to provide you with a steady income until your death. Additionally, annuities typically have tax-deferred growth, allowing your money to compound over time without being taxed until it's withdrawn. Finally, many annuities come with a death benefit—meaning that if you die before receiving all of the payments from the policy, your beneficiary will receive whatever is left over from the policy.Factors to Consider Before Investing in an AnnuityWhen deciding whether or not an annuity makes sense for your situation, there are several factors to consider. First and foremost is risk tolerance—are you comfortable investing in something with no guarantee other than what's stated in the contract? Also important are income needs—do you need guaranteed income now, or do you prefer to delay payments until later? Long-term care needs should also be taken into account when considering an annuity due to its built-in protection against inflation and longevity risk. Other factors include:
- Guaranteed interest rates (if any).
- Payout options (immediate vs. deferred).
- Inheritance potential (since only some plans allow for beneficiaries).
- Fees.
- Other contractual features (such as surrender penalties).

Stephen Dybwad
Stephen J. Dybwad | Highly Individualized Financial Guidance
Cincinnati, OH, Louisville, KY, Indianapolis and Madison, IN,
stephen.dybwad@retirevillage.com
(800) 959-3526


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