Income ChoicesDifferent Annuities have different withdrawal options. For example, some may let you withdraw up to 7% without interfering with the Guarantee of Principal and some may let you withdraw up to 10%. This is one of the reasons why we need to find an annuity that is right for you so you will be able to withdraw according to your needs and still keep the benefits of the annuities. Withdraw up to 15% a year risk-freeMost Annuities will allow you to withdraw up to a certain percentage (such as 7%, 10%, or 15%) a year whenever you want and still retain all the benefits of the annuities. You do not have to withdraw if you do not need the money. The option is there for when you do need the money, you will be able to access your cash risk-free up to a certain percentage. You should be aware of this percentage before you purchase an annuity to ensure that you are comfortable with this amount. If you need to withdraw more than this percentage, you can still do that since it is your money and your investment. However, the guarantee may be reduced or modified depending on each individual annuity contract.
You can start your withdrawal now
In the past, many annuities did not allow you to withdraw
immediately after you purchase them. Many of them had
waiting periods during which you cannot access your money
at all without altering the guarantee features. The good
news is, nowadays, there are very good, highly rated
annuities that will allow you to take income immediately
after you purchased the annuity. There are also annuities
that will give you different benefits if you choose to wait
a certain period of time such as 3 years. You should
purchase the annuity that fits in with your lifestyle and
needs.
No Annuitization Necessary!!!In the past, when you purchased an annuity, you will have to "annuitize" at a later date. Annuitization is the process of electing to have the accumulated value of an annuity paid out as a pension with monthly, quarterly or annual payments. In the past, this used to be necessary when purchasing an annuity. For many people, having to annuitize is inconvenient because many were using annuities as a tax-sheltered vehicle and preferred to decide how much to withdraw each year instead of having a fixed schedule of payments. As a result, many annuities let you invest tax-deferred however you like while giving you a complete guarantee of your principal and complete control of your money. Just like an IRA or other retirement plans, once you reach that age and have held the annuity for a certain period of time, you are free to do whatever you like with your money. This makes Annuities much more attractive as an investment. |
