Annuities in Mississippi
These investment products can help you plan for your retirement.
Written by
Financial blogger and business owner, Meg Stefanac, has more than 15 years experience working in the financial services industry and enjoys helping individuals make solid financial decisions. Meg has extensive experience writing about insurance and finances and is a key contributor to TrustedChoice.com.
Reviewed by
Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career. He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.
While retirement for many hard-working Mississippi residents may feel like it will never arrive, it can sneak up on you. It is therefore never too early to start thinking about retirement savings. A well-planned financial future can enable you to enjoy security and stability in your golden years.
There are many ways to save for retirement. One of them is through investing in an annuity. Qualified independent insurance agents in Mississippi can explain the ins-and-outs of your various annuity options and can help set you up with product that works for you.
There are more than 200 independent insurance agents in Mississippi. Find an insurance agent near you to learn more.
What Is an Annuity?
Annuities are insurance products that are frequently used for retirement savings and guaranteed income. They are can also protect your savings from market volatility while providing you with a lifetime of income.
Why Are Annuities Considered Insurance Products?
As with any insurance product, annuities are designed to mitigate risks. They can help you protect your retirement savings and can provide you with guaranteed income for years to come, even if the stock market crashes.
Annuities also have death benefits. For example, if you purchase a life and 20-year certain annuity, it will pay income for life with at least 20 payments. If you pass away before the term is up, the balance of the income can be paid to the person you have named to receive it, referred to as your “beneficiary.”
If you do not have anyone you would want to leave your money to, you may consider purchasing a life only annuity. This will enable you to collect a guaranteed amount of income for the rest of your life, even if the funds run out. However, whenever you pass away the payments will cease.
There are a wide range of annuity types and options. A qualified insurance agent or financial planner can help you determine which are ideal for your particular situation.
Who in Mississippi Can Benefit from an Annuity?
Annuities are not right for everyone, but for some, they are the best choice for retirement savings. Mississippi residents who make good candidates for annuity products include the following.
- People who are 50 years old or older
- People who have recently come into a lot of money, such as through an inheritance or lottery win, and who want to invest it for retirement
- People who have a lot of assets to invest that they will not need to access for at least 10 years
- People who have maxed out their allowed contributions to 401(k), 403(b), or IRAs but want to invest more toward retirement
- Retirees who want to convert their 401(k), 403(b), or IRA policies to a financial product that will provide guaranteed income for a set number of years
Everyone’s financial situation is different, so it is important that you work with someone who is very familiar with retirement products before making a decision about whether to buy an annuity and, if so, the income options and optional features that are best for you.
What Are the Benefits of Having an Annuity?
One of the biggest benefits of annuities is that your investment grows tax deferred. You will not pay taxes until you take out the money after the age of 59-1/2. Taking the money before then can cause you to incur a 10% penalty on the balance withdrawn.
Some annuities have optional features that can protect your retirement savings and income from market volatility.
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What Are the Different Types of Annuity Products Available in Mississippi?
Here are the different types of annuity products available.
- Deferred annuities: These are typically held for at least 10 years before payments begin at retirement age. Options include the following.
- Deferred variable annuities: The values of these funds are based on the performance of the underlying mutual funds.
- Deferred fixed-index annuities: The values of these funds accrue interest at a fixed rate that is determined by market conditions at the time of purchase.
- Immediate annuities: These begin paying out immediately. They are typically purchased when someone is rolling funds from a retirement account at age 59-1/2 or older.
- Immediate variable annuities: The values of these funds are based on the performance of the underlying mutual funds.
- Immediate fixed-index annuities: The values of these funds accrue interest at a fixed rate that is determined by market conditions at the time of purchase.
Within each of these types of annuities, there are a wide range of options and features. An experienced professional can help you determine which type of annuity is ideal for your particular financial situation.
How Can an Independent Insurance Agent in Mississippi Help with Annuities?
Annuities are complicated. Deciding whether an annuity is right for you, and then figuring out which type of annuity to invest in can be extremely difficult if you try to figure it out alone.
Fortunately, qualified independent insurance agents can provide you with some guidance. Agents who have been certified to provide advice about and assistance with investing in annuities are ready to help. Find a qualified insurance agent near you to get more information.