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At The Spaulding Insurance Agency, located in Simsbury, CT, we can help design the right annuity plan to meet your retirement, savings or investment needs.


There are to basic types of annuities:

A deferred annuity, invests your money for a period of time until you are ready to begin taking withdrawals, usually during you golden years.

An immediate annuity allows you to begin to receive payments after you make your initial investment. You might purchase an immediate annuity as you approach retirement age.

The deferred annuity accumulates money over the length of the annuity from 5-10 years, while the immediate annuity pays out right away, usually in a year.

Within these two categories, annuities can also be either FIXED or VARIABLE depending on whether the payout is a fixed sum, tied to the performance of the overall market or group of investments, or a combination of the two.


Money invested grows tax-deferred. When you make withdrawals, the amount you invested in the annuity is not taxed, but your earnings are taxed at your current income tax rate.


The biggest advantages annuities offer is that they allow you to invest a large amount of cash and defer paying taxes. Unlike other tax-deferred retirement accounts such as 401(K)S and IRAS, there is no annual contribution limit for an annuity. That allows you to put away more money for retirement, and is particularly useful for those that are closest to retirement age and need to catch up.

All the money you invest compounds year after year without any tax bill from the IRS. That allows you to keep every dollar invested working for you and can be a big advantage over taxable investments.

When you withdraw money, you can take a lump-sum payment from your annuity, but many prefer to set up regular payments for a specific time period or the rest of your life, giving you a stream of income.

Annuities can serve as a complement to other retirement income sources, such as SOCIAL SECURITY and PENSION PLANS.

We are here to serve you in Simsbury, CT, all of Connecticut and nationwide.