{"id":3817,"date":"2014-04-24T06:23:08","date_gmt":"2014-04-24T13:23:08","guid":{"rendered":"http:\/\/staging-prblog.paladinregistry.com\/blog\/?p=3817"},"modified":"2021-01-11T02:34:54","modified_gmt":"2021-01-11T07:34:54","slug":"annuities-advantages-annuities-disadvantages","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/investing\/annuities-advantages-annuities-disadvantages\/","title":{"rendered":"Annuities Advantages and Annuities Disadvantages"},"content":{"rendered":"\n<p><a href=\"http:\/\/www.paladinregistry.com\/retirement\/retirement-in-america\" target=\"_blank\" rel=\"noopener noreferrer\">Annuities are a great investment vehicle for retirement<\/a> for those who want to save extra above &amp; beyond the limits of IRAs and 401ks\/403bs, and they have some interesting features that can make them very advantageous.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Advantages Of Annuities<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>There are 2 main types \u2013 deferred and immediate \u2013 depending on how soon you need to start receiving income<\/li><li>No limits on contribution amounts \u2013 you can put away as much as you need to, which is especially helpful for those who need to play catch-up if they are over age 50 &amp; have not saved enough for retirement<\/li><li>Savings grow tax-deferred and your earnings are taxed at your current regular income tax rate when making withdrawals (after age 59 \u00bd)<\/li><li><a href=\"http:\/\/www.paladinregistry.com\/investing\/investment-risk\" target=\"_blank\" rel=\"noopener noreferrer\">Depending on how much risk you need to take<\/a>, you can invest in fixed, variable, and\/or equity-indexed annuities<\/li><li>Depending on the types and features of your particular annuity, you can take a lump-sum payment or receive income over your lifetime or a specific period of time<span style=\"line-height: 1.5em;\">&nbsp;<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Disadvantages Of Annuities<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Sometimes they (especially variable and <a href=\"https:\/\/www.finra.org\/Investors\/ProtectYourself\/InvestorAlerts\/AnnuitiesAndInsurance\/p010614\" target=\"_blank\" rel=\"noopener noreferrer\">equity-indexed versions<\/a>) can carry high expenses in the form of annual fees, policy riders, commissions, and surrender charges, making them cost-intensive<\/li><li>You can often give up control of when you can take your money back out of an annuity without incurring a surrender charge<\/li><li>Withdrawals before age 59 \u00bd are not only subject to taxes, but also a 10% early-withdrawal penalty<\/li><li>If you buy an annuity from an insurance company, you are at the mercy of the claims-paying ability of that company (the higher the credit rating, the better)<span style=\"line-height: 1.5em;\">&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><a href=\"https:\/\/www.paladinregistry.com\/landing\/find-financial-advisors\">Find an experienced financial advisor<\/a> who frequently deals with annuities, works for an RIA firm, earns his\/her money from fees (NOT commissions), believes in having an abundance of investment choices for clients, and has the heart &amp; demeanor of a teacher, NOT a salesman, and chances are you\u2019ve found the right financial advisor to help you prepare and plan for retirement.<\/p>\n\n\n\n<p>To learn more about Martin Federici, view his <a href=\"http:\/\/www.paladinregistry.com\/financial-advisor\/dallas-pennsylvania\/Martin.Federici.Jr\" target=\"_blank\" rel=\"noopener noreferrer\">Paladin Registry profile<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Annuities are a great investment vehicle for retirement for those who want to save extra above &amp; beyond the limits of IRAs and 401ks\/403bs, and they have some interesting features that can make them very advantageous. Advantages Of Annuities There are 2 main types \u2013 deferred and immediate \u2013 depending on how soon you need to start receiving income No limits on contribution amounts \u2013 you can put away as<\/p>\n","protected":false},"author":12,"featured_media":3823,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[395],"tags":[],"class_list":["post-3817","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Annuities: Potential Advantages And Disadvantages<\/title>\n<meta name=\"description\" content=\"Annuities are a great investment vehicle for retirement for those who want to save extra. 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