Purchasing an Annuity

With Forever Young teaming up with SERA, we get asked a lot of questions about what Annuities are, and are they a good investment.  While coming up with this month’s blog about them, I came across the Washington State Department of Retirement System, and they have some great information on this exact topic.  I felt compelled to share.  

What's An Annuity?

When it’s time to retire, you have some additional options—options that can change your finite savings into a monthly, lifetime income called an annuity. An annuity is a guaranteed income plan you purchase. You choose the amount and immediately or later begin receiving money, which usually lasts your lifetime depending on the annuity you select.

Is An Annuity Right For Me?

Annuities can provide guaranteed income for your life. And they offer security through a set monthly income. However, flexibility is not a feature of annuities. Once you set it up, an annuity doesn’t allow you to change the income amount.
With annuities, you take money out of market risk and use it to give yourself a monthly lifetime income. Annuities are the only withdrawal option that guarantees you will not outlive your account balance.

How Do Annuities Affect My Taxes?

While the income of a tax deferred annuity you won’t pay taxes on until you collect income for an annuitized annuity, the IRS still sends out a tax statement annually.


While we feel Annuities are a perfect source of retirement investment for those a part of a pension, it is a decision you will need to make. While in the private work force more employees don’t receive a pension and are responsible for 100% of their retirement minus any Social Security Income they may receive. You only have to make up a small percentage of income, so why put an unnecessary risk into your portfolio?

If you would like to learn more about annuities and to see if one will fit into your retirement savings portfolio, please contact us. Also for those in the public sector and are not paying into Social Security let us show you are 6.2% savings plan and how it can benefit you.

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