Should I Buy an Annuity in 2024?
January 24, 2024 | Kari Mellone
Are you wondering if now is the right time to purchase that annuity you’ve been considering? You are not alone, and timing plays a crucial role in purchasing and using an annuity as a wealth-building tool for future financial success. It affects your investment amount, potential gains, and the impact of the annuity on your financial goals. In this article, we’ll review what an annuity is, how it can help you achieve your financial goals and if 2024 is the right time to buy an annuity.
Remind Me – What is an Annuity?
Annuities are a financial investment product primarily designed for retirees that provide a secure and guaranteed income stream. An annuity is a legal agreement between an insurance company and the owner of the contract, that can only be issued by a life insurance company and can only be sold by a licensed life agent. Annuities are not for everyone, but can be suitable for a sizable portion of society because of the many benefits they offer. Those benefits include:
- Safety from market risk
- No sales charges
- Tax advantages
- Bypass probate if beneficiaries named
- No medical underwriting
- Strong compounding interest rates
- Various withdrawal options
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Buying an Annuity in 2024
The financial landscape is ever-evolving, and the past few years have been exceptionally volatile. With recent economic uncertainties and retirement savings being challenged, whether to invest in an annuity in 2024 has become increasingly relevant. With changing economic conditions, understanding the benefits and disadvantages of annuities and their potential impact on your financial strategy is essential. In this blog, we’ll look at the factors to consider when contemplating an annuity purchase this year, providing insights to help you make informed decisions.
According to InsurnaceNewsNet.com, fixed annuities sales in particular are expected to hold steady and see a positive trajectory over the next 3-5 years. ‘Expectations are for Fixed indexed annuities (FIAs) to continue to reach new record levels as investors seek out solutions with a balance of protection and growth.’ Furthermore, fixed-rate deferred annuities rates continue to outperform CD rates making these investment options highly appealing to risk-averse investors.
Related Article: Why Timing Is Everything When Buying An Annuity
As you research your options and consider investing in an annuity in 2024, rest assured that although interest rates are not as high as they were the past couple of years, we’re still experiencing a favorable investment landscape with competitive interest rates. This year will continue to present another window of opportunity to harness the benefits of annuities in shaping a more secure financial future.
Remember, the timing of your decision is pivotal, and partnering with the right insurance agent is a critical step in selecting an annuity tailored to your needs. At Twin City Underwriters, our experienced agents will help navigate the ever-changing financial trends and ensure that you’re aligning your annuity investment with your personal financial objectives. Your journey toward long-term financial security begins with an informed decision and optimal timing; contact us today to get started.
At Twin City Underwriters, we know that individualized attention to a client’s personal situation and needs are especially important, which is why we take the time to understand you and your financial goals. Contact us to schedule an appointment with one of our experienced insurance agents.
Are you ready to have a meaningful discussion about your financial needs? Call or email TCU today to set up a free, no-obligation appointment with one of our dedicated agents.
Call Twin City Underwriters to learn more: 651-488-0172 or 800-507-6778.