What's an Annuity?
An annuity is a contract between you and an issuer. In the most basic form, you pay money to the issuer and they agree to pay back the principal and earnings to you or a named beneficiary.
What is an Immediate Annuity?
An immediate annuity is a contract with an issuer (such as Thrivent Financial for Lutherans) that provides fixed or variable payments, usually on a monthly basis, for the time period you choose. Immediate annuities, including those from Thrivent Financial for Lutherans, are purchased with a lump sum of money.
While there are a variety of uses, immediate annuities are frequently used to supplement retirement income sources like Social Security, pensions and employer-sponsored retirement plans. A Single Premium Immediate Annuity (SPIA) is often purchased to convert assets from savings, investments, selling a business, life insurance, or other resources into a guaranteed stream of income payments.
What is a Fixed Annuity?
A fixed annuity is a contract between you and the issuer where you put a certain amount of money into the contract and the money grows tax-deferred until you start to make withdrawals. Your money grows at a fixed interest rate, and the issuer guarantees* a minimum interest rate while the contract is in-force.
What is a Variable Annuity?
A variable annuity is a contract between you and the issuer that allows the potential to accumulate assets on a tax-deferred basis to help meet your retirement goals. Similar to a fixed annuity, a variable annuity helps protect against the possibility of outliving your retirement savings. Unique to a variable annuity, you choose how to allocate your premiums among several subaccounts and a fixed account.
Contact a Thrivent Financial representative when evaluating any financial strategies, such as the purchase of annuities.
*Guarantees are backed by the financial strength of Thrivent Financial for Lutherans.
Variable annuities are long-term investment vehicles designed for retirement purposes.
Investing in a variable annuity contract involves risk, including the possible loss of principal. More complete information on the investment objectives, risks, charges and expenses of the variable annuity contract and underlying investment options is included in the prospectuses, which investors should read and consider carefully before investing. Prospectuses are available from a Thrivent Financial representative or at www.thrivent.com.
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