Is a Fixed Annuity Right for You?
A fixed annuity offers many benefits, but it may not be the right financial vehicle for everyone. When considering whether or not to purchase a fixed annuity, keep these questions in mind:
- How is your money invested today?
- What are your sources of income?
- Do you have any other assets?
- Do you own your home?
- A fixed annuity can help your money grow over time. Keep in mind that fixed annuities are long-term savings vehicles. Withdrawing your money early can lead to withdrawal penalties as well as certain tax penalties.
- Your money may not be available for unexpected situations such as medical emergencies, a sudden loss of income or home repairs.
- You should also be aware that the withdrawal period of the fixed annuity may extend too far into your retirement, which means you may not be able to access your money when you need it most. Before committing to a fixed annuity, consider your current age and your retirement goals to make sure the annuity will generate income sufficient to meet your goals.
- Take your time and speak frankly with your licensed representative about your financial situation and your retirement goals. Fixed annuities may be a suitable option for retirement planning, but as with all financial products, there are certain risks to consider. An open discussion about your finances and goals will help you and your licensed representative decide if fixed annuities are a good fit for your portfolio.
Tax-qualified contracts such as IRAs, 401(k)s, etc., are tax deferred regardless of whether or not they are funded with an annuity. If you are considering funding a tax-qualified retirement plan with an annuity, you should know that an annuity does not provide any additional tax-deferred treatment of earnings beyond the treatment by the tax-qualified retirement plan itself. However, annuities do provide other features and benefits such as income options.
Neither The United States Life Insurance Company in the City of New York nor its agents or representatives are authorized to give legal, tax or accounting advice. Please consult your attorney, accountant, or tax advisor.
The Western National series of annuities is issued and underwritten in New York by The United States Life Insurance Company in the City of New York and in all other states by Western National Life Insurance Company.