Annuity

Annuities were established for the purpose of providing a regular income stream upon retirement. They can be shaped and sized according to your needs and give you the option to begin receiving the income at a future date or immediately. You can fund your annuity gradually or all at once. Depending on the type of annuity, its value can be tied to a fixed interest rate or the performance of underlying investment funds.

The goal of retirees — past, present, and future — is to always have a source of income. In the past, retirees could rely on Social Security and employer-sponsored pensions as that source of income. Over the years, much has changed. Today, life expectancies have increased, while the certainty of Social Security and employer-sponsored pension plans has diminished. By all estimates, the next generation of retirees, the baby boomers, will live longer and spend more time being retired than any previous generation.

A variable annuity is a long-term financial vehicle designed for retirement purposes. In essence, a variable annuity is a contractual agreement in which payment(s) is/are made to an insurance company, which agrees to pay out an income or lump sum amount at a later date. There are contract limitations, fees, and charges associated with variable annuities, which include, but are not limited to, mortality and expense risk charges, sales and surrender charges, administrative fees, and charges for optional benefits. Early withdrawals may be subject to surrender charges and taxed as ordinary income, in addition, if taken prior to age 59 ½, an additional 10% federal income tax penalty may apply. Withdrawals reduce annuity contract benefits and values. Investments in variable annuities will fluctuate and values upon redemption may be less than the original amount invested. Variable annuities are not guaranteed by FDIC or any other government agency and are not deposits or other obligations of, guaranteed or endorsed by, any bank or savings association. Guarantees subject to the financial strength and claims paying ability of the issuing insurer.

• Do you have sufficient assets to provide enough income at retirement?
• Are you prepared if you have a long retirement of 10-30 years or longer?
• Will your retirement income last as long as you do?
• Will you have enough money when you retire?

These are all questions that Kennon Wealth Management can help you answer. We can also help you arrange:

• for your annuity to provide an income for a specific period of time or an entire lifetime.
• for income to be received from a fixed income plan or variable income plan that is tied to the performance of underlying investment funds.
• to have your annuity provide income to you alone, to you and a significant other, to continue to whichever of you lives the longest or even to another beneficiary beyond your lifetime and that of your significant other.