An Annuity is a contract that provides a stream of payments to a person designated as the beneficiary (recipient of benefits).  Generally, annuities are purchased through a life insurance company.

How are annuities created?

In most cases, an individual buys a retirement annuity with an initial lump-sum payment, then continues to make contributions overtime. This is called the accumulation phase. During the accumulation phase, earning on the policy grow tax-deferred.

After retirement, the individual starts drawing a payout from the policy. This is called the distribution phase or payout phase. By waiting until retirement to receive payouts, the individual enjoys certain tax advantages, avoids tax penalties, and often falls into a lower tax bracket when the payments start.

Who can benefit from the sale of annuity payments?

Anyone receiving annuities benefits (individuals or families currently receiving income or who expect to receive income in the future) may be eligible to sell all or portions of those annuity payments.

Free, No Obligation Consultation!

Contact the Professionals Today at 559-213-0112 or