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David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Operations Manager
Jennifer A. McCabe
Client Service Specialist
jennifer.mccabe@prudential.com
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
January/February 2023
What You Should Know About Annuities
Retirees who are concerned that their savings and investments won’t be enough to sustain them throughout retirement may want to consider purchasing an annuity. Annuities can provide a stream of income for as long as you live or for a specified number of years. When it comes to the timing of purchasing an annuity, you essentially have two options: immediate or deferred.
1. Immediate Annuity
This is the simplest type of annuity. You make a single lump sum payment to an insurance company. In return, you receive a fixed stream of income for your lifetime or a fixed period. Payments start soon after you purchase the annuity, usually within a year.2. Deferred Annuity
You make premium payments over time, then take income sometime in the future, allowing your money to potentially grow.More Choices
Annuities differ further, depending on the type of annuity and the options offered. Variations exist within each of these two categories, but below are the broad definitions.Fixed Annuities
Fixed annuities offer a guaranteed rate of return on contributions and guaranteed income later. A fixed annuity may be appropriate for someone interested in low risk. However, their lack of inflation protection may be a disadvantage.Variable Annuities
A variable annuity is an investment account that grows tax deferred and offers a range of investment options (called subaccounts). The value of the account depends on the performance of the type of investments you choose. As with any investment, variable annuities involve risk and are not appropriate for short-term goals.Indexed Annuity
An indexed annuity typically promises to provide returns linked to the performance of a market index. Indexed annuities are complex products, and you can lose money if the market index declines.It’s important that you consult your financial professional because of the multitude of conditions, requirements, fees, and suitability.
*Annuity products are not FDIC-insured, and their guarantees are backed solely by the claims-paying ability of their issuing life insurance company. Distributions from annuities are taxed as ordinary income and, if taken prior to reaching age 59 1/2, may be subject to an additional 10% IRS tax penalty.
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David P. McCabe, Nathaniel D. High, and Nicholas J. Over are Financial Planners with, and offer securities and investment advisory service through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
LPLE and LPL Financial are not affiliated with Centuria Financial Group.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Centuria Financial Group and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
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