To retire comfortably, you’ll likely need to draw on many sources of income – one of which might be a fixed annuity that can provide a lifetime income stream. But you might have heard some discouraging things about annuities. How concerned should you be?

Many of these negatives are misconceptions. For example, you may think you can’t touch any of your money before you retire without facing federal tax penalties. But some annuities allow a small withdrawal with no penalties.

Another misconception: The interest rate is too low to make an annuity worthwhile. In reality, a fixed annuity’s key benefit is its guaranteed interest rate and the potential for lifetime income.

You might also have heard that when you die, the insurance company that issued the annuity will keep all the money. But if your payout plan includes a beneficiary agreement, and you’ve named a beneficiary, he or she will get the remaining amount in the contract.

An annuity may or may not be right for you, but don’t be swayed by misconceptions – instead, base your decision on facts, rather than fears.

If you have any questions please contact me at 980-859-2549 or by e-mail at Brandon.Monette@edwardjones.com

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.