RRA Educational Resources/Blog/Which Is Right for Your Retirement, Growth or Income Annuity?

Which Is Right for Your Retirement, Growth or Income Annuity?

Annuities are a type of insurance product that can provide a guaranteed income stream in retirement. There are two main types of annuities: income annuities and growth annuities.

Income annuities provide a fixed stream of income for life. The amount of income you receive will depend on the amount of money you invest in the annuity and the annuity’s interest rate. Income annuities can be a good option for people who want to ensure that they have a steady stream of income in retirement.

Growth annuities offer the potential for growth, but there is no guarantee. The amount of money you receive in retirement will depend on the performance of the underlying investments. Growth annuities can be a good option for people who want to grow their retirement savings and are willing to take on some risk.

Here is a table that summarizes the key differences between income annuities and growth annuities:

Here are some of the benefits of income annuities:
- Guaranteed income: Income annuities provide a guaranteed income stream for life. This can provide peace of mind for retirees who are worried about outliving their savings.
- Tax-deferred growth: The growth of income annuities is tax-deferred, which can help you save on taxes.
- Flexibility: Income annuities can be flexible. You can choose to receive your income monthly, quarterly, or annually. You can also choose to defer your income for a certain period of time.

Here are some of the benefits of growth annuities:
- Potential for growth: Growth annuities have the potential to grow your retirement savings. This can help you reach your retirement goals.
- Flexibility: Growth annuities can be flexible. You can choose to invest your money in a variety of different investment options. You can also choose to take your money out of the annuity early, if needed.

Which type of annuity is right for you?

The best type of annuity for you will depend on your individual needs and goals. If you are looking for a guaranteed income stream in retirement, then an income annuity may be a good option for you. If you are willing to take on some risk and want the potential for your retirement savings to grow, then a growth annuity may be a good option for you.

​It is important to speak with a Retirement Risk Advisor to determine which type of annuity is right for you. We can help you assess your individual needs and goals and recommend the best annuity for you!

See other posts like this one:

Thursday, March 28, 2024

In 2024: What Medicare Could Cost You

Friday, March 01, 2024

Building Cash Flow in Retirement: Income Diversity Strategies

Wednesday, February 21, 2024

Why Legacy Planning is Part of Smart Retirement Planning

Thursday, February 15, 2024

How a Living Will Can Help Your Retirement

Friday, February 09, 2024

Retire Right: Ditch the Traditional Plan, Embrace Your Risk-Based Freedom

Thursday, February 01, 2024

From Pensions to 401(k)s: Shifting Risks in Retirement

Wednesday, January 24, 2024

Why Today’s Retirement Isn’t Like Your Parents’

Friday, January 19, 2024

Roth vs. Traditional Accounts for Pre-Retirees

Thursday, January 11, 2024

Pioneers of Risk-Based Retirement Planning

Thursday, November 30, 2023

Understanding Linked-Benefit Long-Term Care

Wednesday, November 22, 2023

Which is Best: Annuity or LIRP? Or Both?

Thursday, November 09, 2023

You Can Unlock Your Home Equity for Retirement

Wednesday, November 01, 2023

What Is a Second-To-Death Life Insurance Policy?

Friday, October 27, 2023

Beneficiary IRAs: Preserving Your Legacy for Future Generations

Thursday, October 19, 2023

Steady Stream of Retirement Income

logo.png

Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor and an affiliate of Brookstone Capital Management, LLC. BWA and Retirement Risk Advisors are independent of each other. Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.

© COPYRIGHT RETIREMENT RISK ADVISORS. ALL RIGHTS RESERVED.

RETIREMENT PLANNING

Step 1 – Team Approach
Step 2 – Get to Know You
Step 3 – Design Your Plan
Step 4 – Provide Education
​Step 5 – Help You Take Action

CONTACT US

1309 Coffeen Avenue, Suite 3851, Sheridan, WY 82801

Support Staff support@retirementriskadvisor.com

Toll free: 1 (855) 491-0400
​Text us at: 1 (307) 264-2902