What is an annuity?
In the world of retirement saving and planning, you need products to help you achieve growth with built-in security features.
An annuity is an insurance product you can use to accumulate funds for retirement and other long-term objectives. It is a contract between the purchaser and the insurance company where money is paid to the insurance company now in exchange for the value of the contract or income payments at a later time.
By including annuities in the strategy you develop to meet your financial goals, you can gain several important benefits:
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Competitive interest rates
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Tax-deferred growth
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Minimum rate guarantees
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Guaranteed death benefits
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Guaranteed lifetime income
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Possible avoidance of probate with its cost and delay
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Current tax savings
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Your money can grow faster in a tax-deferred product like an annuity because interest compounds on top of the money you ordinarily would have paid in current income taxes. A tax-deferred product will always outperform a taxable one because you have three components working for you:
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Your premiums earn interest
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The earnings on your premiums earn interest
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And most importantly, the money you don't pay in current taxes earns interest
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Is an annuity right for you?
Do one or more of the following apply?
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You are seeking a guaranteed income you can never outlive
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You are interested in receiving a higher rate of return than another traditional financial option such as a CD
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You are making maximum contributions to 401(k) or other tax-qualified retirement plans and would like to defer taxes on current income
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Type of annuities
After exploring the different types of annuities, if you think this insurance product may be right for you, please contact us at 1-888-262-8131 or e-mail
salesdesk@rbc.com
. We can provide the name of a financial representative in your area who can discuss annuity options that are available to fit your needs.
Annuities may not be available in all states. They contain limitations and exclusions, please consult the annuity contract or contact the company for full details.
