Growing your retirement savings is only one part of planning for your future. Have you thought about how you'll turn your "nest egg" into a monthly retirement income? Annuities are long-term savings vehicles designed to do just that: grow and/or protect your money leading up to retirement, then turn that money into an income stream you can't outlive.
Deferred annuities (fixed, fixed indexed and variable annuities) consist of both an accumulation phase and an income phase.
Income annuities consist of immediate and deferred income annuities. Immediate annuities provide income soon after purchase of the annuity; deferred income annuities provide income at a later date.
Consider purchasing an annuity to help you with your accumulation and/or income objectives. Explore the options we can offer you:
Fixed annuities For a predictable return
- Accumulation: Earnings are based on a fixed interest rate and not taxed until paid out (tax-deferred)
- Income: Can specify payouts for a fixed period of time or for life (annuitization)
- Best for investors with low risk tolerance who seek wealth preservation or an addition/alternative to other fixed income vehicles (Bonds, CD's, etc.)
Fixed indexed annuities For a predictable return with growth potential
Accumulation: Clients may allocate their premium to a fixed account, where earnings are based on a fixed interest rate, and/or to the indexed accounts, where earnings are tied to the performance of an outside index. Earnings are not taxed until paid out (tax-deferred)
- Protects against market downturns - your account value cannot fall with the market
- Income: Can specify payouts for a fixed period of time or for life (annuitization) or lifetime withdrawals (offered through special contract or rider provisions)
- Not an investment, an insurance product
- Best for investors with low risk tolerance who seek greater growth potential than other fixed income products
Income annuities (fixed) for current and future income
- Provides income payments for a fixed period of time or for life
- Choose income now (immediate annuities) or income later (deferred income annuities)
- Offers multiple options for payout, including income that lasts for your entire life (or for the lives of you and your spouse)
- Income payments are taxed using the exclusion ratio method (each payment consists of earnings and a return of basis)
- May be appropriate for individuals with low to moderate or high risk tolerance (depending on type of payout option chosen) who seek current income
Variable annuity For a maximum potential return
Contact your financial advisor to determine which Lincoln annuity may be right for you.