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selected and whether the annuity is qualified or non-qualified, you may need to pay federal income tax on any earnings withdrawn from the annuity and/or the principal withdrawn. Also, surrender charges may apply if funds are withdrawn before the annuity’s surrender charge period expires. IRS penalty if withdrawn before age 59½.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.
2/12/2020 6:00:00 AMIn December of 2019 the SECURE Act was enacted, altering some of the restrictions and opportunities surrounding the way people save for retirement. Here are some of the ways The SECURE Act may impact your retirement, tax, and estate planning strategies. Read Article: The SECURE Act and Your Retirement Savings »