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June 27, 2024

Understanding the Benefits of Annuities

green plant on brown round coinsBy being diligent and aware of various opportunities, you can establish and maintain the groundwork for a prosperous and secure future for you and your loved ones. Annuities may play a crucial role in this endeavor as you seek to tuck away funds that could be used to enjoy fiscal stability and peace of mind. Whether planning for retirement or simply wanting to diversify your assets and savings portfolio, annuities can be valuable investments.

At New Beginning Insurance Services, we’re well-positioned to assist families and individuals in the Garland, TX area as they seek to understand and invest in ideal annuities.

What Are The Benefits Of Annuities?

While annuities may come in many forms and help fulfill various specific goals, the general function of these financial tools is to help you secure future income and resources. In exchange for your initial contributions, you may enjoy the following benefits down the road:

  • A reliable source of income—Annuitization is the process through which you can cash your annuities. This can provide a consistent and long-term income stream that may even last throughout the rest of your lifetime and pay out an eventual total greater than your initial investments.
  • Financial security for loved ones—The inherent value and eventual payout potential of annuities may allow them to serve as valuable commodities during difficult times. Should you unexpectedly become unable to provide for your family, such as due to disability or death, annuities may ensure they are not left destitute.
  • Tax advantages—Following your initial investments, their values can grow over time. In many cases, these gains are not taxed until you choose to withdraw funds.

What Types Of Annuities Are There?

Ideal investments may depend on your unique circumstances, including your financial situation and future goals. The following common options may often prove advisable for those in a variety of conditions:

  • Fixed annuities may offer low-risk opportunities by including a minimum guaranteed interest rate and not losing value over time.
  • Variable annuities can provide significant growth potential, as the values of these investments are tied to market conditions.
  • Indexed annuities may serve as a middle ground between the aforementioned options, establishing a minimum guaranteed interest rate and growth potential tied to an underlying index, such as the S&P 500.
  • Immediate annuities can be an attractive option if you want to parcel your initial investment into gradual payouts and are planning to begin withdrawals within a year.

We’re Here To Help

Contact the knowledgeable and experienced team at New Beginning Insurance Services today to learn more and begin investing in your future.


This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information. 


Categories: Annuities

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