An annuity is a contract between an individual and an insurance company. The company agrees to provide an income, which may be either fixed or variable in amount, for a specified period of time in exchange for a stipulated amount of money. During the accumulation period of the annuity contract, investment growth is tax-deferred.

You can enjoy the security of a fixed annuity or match your risk tolerance profile with a variable annuity. Investment growth in either a fixed or variable annuity is tax-deferred; taxes are paid when funds are withdrawn from the account.

While non-qualified annuities offer the added benefit of tax-deferral, in the case of qualified annuities, the tax-deferral is provided by the retirement plan itself. The investor should focus on the benefits offered by a variable annuity to assess if a variable annuity is right for them.

Please contact Barkley Insurance if you would like more information regarding annuities.

See Also:
• Health Insurance
• Life Insurance
• Dental Insurance