How do you define retirement? Is it a distant dream or have you started planning for retirement already? Most financial experts suggest that the right time to start retirement planning is in your late 20's, allowing you to fully harness the power of compounding. Regardless of your age, retirement planning is essential and can save you a lot of trouble later. So, if you didn't start your retirement planning in your 20's, then the Baty Agency can help you get started now.
Non-qualified deferred annuities are one of the best ways individuals have to set aside money on a tax-deferred basis. A non-qualified deferred annuity is one which is not used as part of any qualified retirement plan (Traditional IRA or Roth IRA). Contributions made into a non-qualified deferred annuity are not income tax deductible. However, the amount contributed is not limited to a certain dollar maximum each year, and the earnings of the deferred annuity accumulate on a tax deferred basis. A unique feature of an annuity, not found in any other investment vehicle, is that it can provide a stream of income that cannot be outlived. If the annuity benefits are to be paid over a lifetime, the monthly or annual benefit amount is guaranteed to come each and every month or year regardless of how long the individual lives. Several other payment options are also available. In the event of death, all proceeds can pass directly to a named beneficiary, without surrender charge, probate delay, estate settlement costs, or publicity.
A Traditional IRA is a personal retirement savings plan. Contributions may be tax deductible and interest earnings are tax-deferred. Anyone under the age of 70 ½ with earned income can contribute up to 100% of earned income per year. Taxpayers age 50 and over can make an additional annual "catch-up" contribution.
The Roth IRA is a personal retirement savings plan. Contributions are not tax deductible, however, distributions of earnings are tax free under certain circumstances. If you have earned income, you may be able to establish a Roth IRA.