When it comes to filling the gaps of your retirement income, an annuity can help. Designed to pay a steady stream of income in your retirement years, Farm Bureau agents offer two types of annuities:
Fixed Annuities: Offer a fixed interest rate ensuring your balance will grow at a steady rate.
Indexed Annuities: Are often considered the best of both worlds, taking advantage of potential gains in the market while protecting you from loss with a guaranteed1 minimum interest rate.
You can begin to receive annuity payments upon reaching age 59 ½ (any earlier and you could be charged penalties). It’s up to you how you’ll be paid – one lump sum, annually, quarterly, etc.2 – and you can also decide how long you’ll receive payment with options ranging from one-time to a lifetime.
Annuities are often just one component of a retirement strategy that could include Social Security, 401(k) plans and/or IRAs. I can be a valuable resource when it comes to choosing an annuity as part of your overall strategy.
1 The guarantees expressed on this Web page are based on the claims-paying ability of Farm Bureau Life Insurance Company.
2 Depending on which income payment option is selected and whether the annuity is qualified or non-qualified, you may need to pay federal income tax on any earnings withdrawn from the annuity and/or the principal withdrawn. Also, surrender charges may apply if funds are withdrawn before the annuity’s surrender charge period expires. IRS penalty if withdrawn before age 59½. Neither the Company nor its agents give tax, accounting or legal advice. Consult your professional advisers in these areas.
1/11/2022 6:00:00 AMBelieving these insurance myths could end up costing you. We bust four common insurance myths about car insurance, life insurance, business coverage and more. Read Article: 4 Common Insurance Myths »