Annuities in Lancaster, CA

As you look ahead to retirement, securing a steady income becomes a top priority. While traditional pensions and investment accounts can play significant roles, annuities may offer another powerful tool to help grow your savings and provide financial stability later in life.

What Is an Annuity?

An annuity is a financial agreement between you and an insurance provider. You contribute funds—either as a lump sum or through regular payments—and in return, the provider commits to paying you income in the future. While exact functionality may vary, annuities generally aim to grow your money over time and offer financial support when you may need it most.

Typically, the insurer invests your contributions, allowing the value of your annuity to increase. When you’re ready to start drawing income, the accumulated funds can be distributed in a way that suits your needs.

What Types Are There?

The structure of your annuity will influence how your money grows and how you receive payments:

• Fixed annuities offer a guaranteed interest rate, making it easier to predict your future income.
• Variable annuities allow you to invest in various subaccounts, which can lead to higher returns, though with more risk.
• Immediate annuities begin distributing income shortly after you make your initial investment. Payments are calculated based on factors like your age, life expectancy and the amount invested.
• Deferred annuities have a growth phase, during which your money accumulates, followed by a payout phase that typically begins at retirement.

What Are the Benefits of Annuities?

Annuities can be a valuable part of your retirement strategy, potentially offering the following key benefits:

• Supplemental income—Annuities can complement other retirement accounts like 401k plans, giving you a broader financial safety net.
• Unlimited contributions—Unlike some retirement plans, annuities don’t typically cap how much you can invest.
• Tax-deferred growth—Your investment grows without being taxed until you begin withdrawals, at which point it’s taxed as regular income.

Whether you plan to use the funds for everyday expenses, health care or travel, annuities can provide peace of mind and financial flexibility in your later years.

We’re Here to Help

Contact Huddleston Insurance Services today to discuss annuities and find the right investments for your financial future.