Like 401(k) plans and IRAs, annuities offer you the opportunity to accumulate assets for your retirement on a tax-deferred basis. Unlike 401(k) plans and IRAs, however, annuities enable you to:
- Contribute as much as you wish, generally without limitation (insurance company maximums may apply)
- Receive payments at retirement that are guaranteed by your insurance company to last as long as you live1
- Take advantage of other insurance company guarantees that vary according to the annuity you buy, but may include a death benefit and minimum income stream2
Annuities are contracts between you and an insurance company. In return for your purchase, you are assured of receiving a stream of payments in the future. Your UBS Financial Advisor can help you evaluate what types of annuities might make the most sense for you. For example: - Fixed-rate annuities offer a fixed interest rate for a specified period of time
- Variable annuities offer the opportunity to participate in professionally managed securities sub-accounts
- Immediate annuities could be appropriate for individuals who need income right away or at least shortly after they purchase their annuity contract
UBS offers a wide variety of annuities with various combinations of features and benefits. We perform extensive due diligence on select third-party insurance companies to select products that meet our criteria. If you are concerned about the cost of a retirement that may last 20 to 30 years and you are already contributing the maximum to a 401(k) or other retirement plan at work and/or an IRA, then talk to your Financial Advisor about annuities.
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