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Retirement Worries Keeping You up at Night?

Here's One Option That Could Help You Rest Easy

The thought of retirement should fill anyone with thoughts of travel, leisure and spending more time with family and friends. But if you're like many people looking ahead to leaving the workforce, you can't help feeling a little worried about the future.

In fact, having enough money set aside for retirement sits at the top of most Americans' list of financial concerns. It even worries more people than the thought of how they would pay their medical bills in the event of a serious illness or accident.

But with some preparation and the right plan for you and your family, you can look forward to enjoying retirement instead of wondering if you're going to have enough income to last the rest of your life.

One option for investors looking for safety of savings, guaranteed interest growth and a steady stream of income during retirement is a fixed deferred annuity.

What do "fixed" and "deferred" mean?

With a fixed annuity, the insurance company agrees to pay you no less than a specified interest rate during the time your account is growing. That rate is not based on stock market returns or other risky investment strategies.

Anything other than an immediate annuity (which pays out right away) is a deferred annuity. A deferred annuity is invested for a period of time until you are ready to begin taking withdrawals.

How can income from an annuity work for you?

An annuity is simply a contract between you and an insurance company. All have one common feature that sets them apart from other financial products: With an annuity, the insurance company promises to pay you on a regular basis for a period of time you choose — including the rest of your life. That's a promise other financial products don't offer.

Initially, you make a lump-sum investment or make regular minimum contributions. There are no annual limits when funding an annuity. So if you're approaching retirement, it gives you a chance to catch up.

Once you decide when you would like to start receiving payments, you would receive them on the dates of your choice. Which means you can receive a check the day after you retire or you can wait until years later to start drawing on your annuity. It's your choice.

When you begin to make withdrawals, the original amount you contributed to the annuity is not taxed, but your earnings will be taxed at your regular income rate at that time.

Payments can be received monthly, quarterly, annually or even as a single payment. The payment size is determined by varying factors, which include the length of the payment period. There are also several options that determine how your payout is calculated and how it is paid to your beneficiary when you die.

If an annuity sounds like it could ease your retirement worries or to find out if it's right for your retirement plan, set up an appointment with an agent to get all the facts.