Massachusetts Retirement Annuity Plan
We will work with you to find the right retirement annuity and life plan in Massachusetts and Boston. Below you will find a general overview of what a retirement annuity plan is in Massachusetts. Please request a quote or leave us your information through our quick contact form.
The Basics: What is a Retirement Annuity?
- A retirement annuity is a legal contract between an insurance company and the owner of the contract. It is an agreement whereby the insurance company makes specific guarantees in consideration of money being deposited with the company.
- The parties to an annuity contract are the Insurer, the Contract Owner, the Annuitant and the Beneficiary
- An annuity promises the periodic payment of a sum of money for a term of years or for the life of a person.
- The money deposited into an annuity accumulates tax-deferred until you begin to make withdrawals or begin to receive regularly scheduled payments.
- As a tax deferred investment, money invested in an annuity grows because:
- The original investment earns interest
- The interest earns interest, since it is compounded automatically
- The money one would ordinarily pay out for taxes remains invested, thus earning interest