Build your annuity to match your financial goals
Dreaming about the day you can do what you want when you want? That's what retirement is all about—embracing the things you didn't have time for while working. And while the thought of enjoying a carefree life is exciting, aiming to ensure a comfortable retirement requires careful planning. One valuable tool in your retirement strategy arsenal is annuities. This guide will explore how annuities can be customized to align with your financial goals and provide a worry-free future.
Growing wealth for tomorrow
Annuities offer various product options and strategies that cater to your unique financial aspirations. Whether you want to build wealth steadily or make more aggressive investments, annuities can be tailored to match your risk tolerance and growth ambitions. You can set the stage for a financially robust retirement with the right choices.
Unlocking tax advantages
Tax deferral is a great benefit that annuities bring to the table. Your earnings and growth within an annuity are shielded from taxes until you start withdrawing funds or receiving lifetime income—typically during retirement. This means that your money can grow more over time, potentially saving you substantial taxes. Take advantage of this tax-smart strategy to enhance your financial stability.
Crafting your retirement income stream
Your retirement is dependent on having a reliable income stream. Annuities can help you create a guaranteed income stream throughout your retirement years. Most annuity contracts offer the option to convert your accumulated funds into a consistent paycheck, ensuring you have the financial resources needed to support your desired lifestyle. You can even extend this benefit to your spouse, providing a lasting income stream for both of you.
Leaving a lasting legacy
Preparing for the future is much more than just retirement planning—it's about leaving a legacy for your loved ones. Annuities equipped with a guaranteed death benefit allow you to pass on your assets without the hassles of the probate process. Ensuring your hard-earned money gets into the right hands, you can provide for your family's future while minimizing complications.
Mastering contract ownership for clarity
Understanding the nuances of annuity contracts is essential for aligning your intentions with the desired outcome. Setting up your contract ownership, known as "titling," can significantly impact how your annuity functions. Let's explore the two primary types of annuity contracts and their implications.
Owner-driven contracts: Your power in control Owner-driven contracts revolve around the contract owner's age. This age determines the annuities and benefits that can be utilized, along with triggering the death benefit upon the owner's passing. This setup gives you control over the contract's direction and the flexibility to tailor your annuity to your evolving needs.
Annuitant-driven contracts: Age as the guide On the other hand, Annuitant-driven contracts are influenced by the annuitant's age. The annuitant's age dictates the annuities and benefits applicable, and their death activates the death benefit. This arrangement can be suitable when the annuitant is a non-natural entity. However, most carriers, including Delaware Life, offer owner-driven contracts for greater individual control
Parties involved: Navigating the landscape
Four essential parties play distinct roles within an annuity contract, contributing to its dynamics and functionality
Owner: As the legal contract holder(1), the owner wields the authority to choose investments, request distributions, and modify beneficiaries. In owner-driven contracts, age determines crucial factors.
Annuitant: The annuitant's age guides the contract's course in annuitant-driven contracts or contracts owned by non-natural entities. Despite their role, they don't possess any contractual control.
Beneficiary: The death benefit recipient upon the owner or annuitant's demise. Their involvement becomes active only after the owner's passing.
Insurance Company: The contract issuer is responsible for its guarantees and overall administration.
Crafting your financial future
The path to a fruitful retirement is paved with strategic planning and the right financial instruments. Annuities offer you the power to shape your financial destiny, providing growth opportunities, tax advantages, dependable income streams, and the ability to create a lasting legacy. By mastering the art of contract ownership, you ensure that your intentions come to life as you dreamed it would.
Secure your tomorrow today
Don't leave your retirement to chance. Take control of your financial future by exploring the potential of annuities. Contact us today to learn how to tailor an annuity to match your unique goals and aspirations. Your dream retirement awaits—let's build it together.
1 A contract can be owned by a single individual, jointly owned by more than one individual (usually spouses), or a non-natural entity such as a trust, corporation, or non-profit. Tax deferral may or may not be available depending on the entity type. Please note: At Delaware Life, we offer only joint contract ownership with spouses, and we do not allow more than two contract owners.
