The major benefit of annuities is that they produce guaranteed systematic payments. Annuities are quite similar to Social Securities or a pension plans. Annuities help you turn your funds into a guaranteed stream of income for your lifetime. However, unlike Social Security and many pension plans, annuities allow you elect a beneficiary to receive your payments if you pass away prematurely.

Annuities work very much like a savings account insofar as they earn interest, but do not lose value based on equity market conditions. In non-qualified annuities, there are no restrictions on the amount you may deposit, but your deposits are not tax deductible like a traditional retirement account. On the other hand, in annuities, your money grows tax deferred until a later date, which allow you to enjoy the benefits of compound interest.

Once age 59 ½ is reached, you can begin to withdrawal your funds with no penalties from the IRS. Unlike most retirement accounts, with non-qualified annuities you are not forced to withdrawal a portion of your funds at 70 ½. This way, you stay in control of how and when you withdraw your funds.

An annutization helps you to spread out the taxable income over several years. When withdrawn from non-qualified annuities, your funds are never taxed, but they are subject to interest. If the account is annuitized, then the taxable interest will be distributed evenly in each payment, not in a lump sum.

Annuities also provide protection from creditors. Once the annuity principal has been annuitized, it is very difficult for creditors to attach to the monthly payments. It means that annuities guarantee sure income in any and in any situation.

Thus, non-qualified, fixed annuities can be extremely valuable financial products in retirement.

For more information on annuities, please call the AnnuityForLife.com experts toll-free at 1-888-261-6237