Annuities and Life Stages
No matter how close you are to retirement – or if you’re already retired – after-tax annuities can play a useful role. Take a look at how after-tax annuities fit in the savings and income plans of these fictional investors.
Mid-career and saving for retirement
John and Susan K., a couple in their early fifties who’ve maxed out on their contributions to their employer-sponsored retirement plans and IRAs, and have some additional income to invest.
Planning to retire in the next five years
Juan and Blanca R., five years from retirement, found the solution to ease their concerns over not having saved enough.
Living in retirement
Harold C., retired three years now, needs to create a retirement income stream he knows he cannot outlive.
Please keep in mind the annuities are designed for retirement and other long-term goals. When you contribute to an annuity, your money must remain in it until you reach 59½. If you make a withdrawal before then, the money will be taxed as ordinary income and you may be subject to an additional 10% early withdrawal penalty. Furthermore, if you choose to invest in the variable investment products, your money will be subject to the risks inherent in investing in securities.
After-tax annuities are issued by TIAA-CREF Life Insurance Company (TIAA-CREF Life), 730 Third Ave., New York, NY 10017.
