Please ensure Javascript is enabled for purposes of website accessibility
Thursday, May 09, 2024

Why annuities make sense for the self employed

Annuity_Basics_Intro_img.jpg

An annuity is a financial product that provides a stream of payments in exchange for a lump sum payment. It can be a great option for self-employed individuals looking to secure their financial future. Here are some of the reasons why a self-employed person should consider buying an annuity:


Guaranteed Income: An annuity provides a guaranteed income stream for life, which can be particularly appealing for self-employed individuals who do not have access to traditional pension plans. This can provide peace of mind and help them to plan their finances effectively for the future.


Tax Advantages: Annuities have favorable tax treatment compared to other investment products. The income from an annuity is taxed at ordinary income tax rates, and a portion of each payment may be tax-free.


Inflation Protection: Annuities often include an inflation protection feature, which means that the payments increase over time to keep pace with the rising cost of living. This can help to ensure that the income received in retirement will be sufficient to maintain the individual's standard of living.


Estate Planning: Annuities can be used as part of an estate planning strategy, as they can provide a way to transfer wealth to beneficiaries in a tax-efficient manner.


Diversification: Self-employed individuals often have a significant portion of their wealth tied up in their business. Buying an annuity can provide diversification and reduce the risk associated with relying solely on the success of the business.


In conclusion, buying an annuity can provide self-employed individuals with a range of benefits, including guaranteed income, favorable tax treatment, inflation protection, and diversification. It is important to carefully consider the different types of annuities available and to work with a financial advisor to determine the best options for their unique needs and circumstances.

Find more at https://harborshieldfinancial.com and https://saferetirementsystem.com
[Submitted by USPA]

About This Member

G. DePretis

G. DePretis

Founder - Director
Photographer, Concerts, Wildlife, Live Shot
uspressassociation.org - weenzine.com - phishmag.com - mediacraftstudios.com - weekapaugnews.com - cpmw.org
Other Articles By This Member
     

Navigation

Roxette Announces 2025 South African Tour!

Get ready to dust off your dancing shoes and crank up the volume because Roxette is coming back to South Africa!

Read more..

Springboks steal the show,at the SA Sport Awards.

The 17th Annual South African Sport Awards, a celebration of sporting excellence, pulsated Sun City with vibrant energy on Sunday night.

Read more..

Officials for ICC Men’s T20 World Cup announced

The International Cricket Council (ICC) has announced the 26 match officials for the first round of the ICC Men’s T20 World Cup 2024 in the United States of America (USA) and the West Indies.

Read more..

     The US Press Association Press Pass & Credentials - The Standard For New Media Freelancers And Professionals