April 9, 2018

Is An Annuity Right for Me?

While annuities are retirement savings vehicles, they are not just ideal for those nearing retirement. By starting to save for retirement earlier in life, you can take advantage of earning a competitive interest rate on the money you save. Additionally, annuities offer tax-deferred growth. This means that until you take a withdrawal or begin receiving regular payments, the interest you earn on your annuity will accumulate on a tax-deferred basis—in other words, instead of paying taxes on interest, you actually earn interest on interest.

When you reach retirement age, defined by the IRS as 59 ½, you can begin to take withdrawals without IRS penalties or you can convert your annuity into a steady stream of income to replace the paycheck that you will no longer be receiving.

Some of the features of NMB’s annuities include:

Safety: Annuities are not subject to fluctuations in the financial market so your principal will remain intact.

Guaranteed Interest Rate: In addition to the current interest rate that NMB annuities pay, which is typically higher, each of our annuities has a minimum guaranteed interest rate of 1 percent.

Single or Flexible Payments: NMB offers both single payment and flexible payment deferred annuities. Single payment annuities are ideal if you have a lump sum of money to invest, such as a 401(k) rollover. Flexible payment annuities allow you to make payments in the amount and on the schedule of your choosing.

Access to Funds: NMB’s specific annuities offer different withdrawal options, but all allow you to access a certain portion of your funds without a penalty from NMB.

No Contribution Limit: Unlike other retirement savings plans, NMB annuities have no IRS contribution limit. This means you can put as much money as you can afford into your annuity.

Lifelong Guaranteed Income: When it comes time to begin receiving regular payouts from your annuity, you can choose to receive structured payments for the rest of your life.

For more information about NMB annuities, contact a district representative today!