Can I Start An Annuity With $5,000?

Shawn Plummer

CEO, The Annuity Expert

Can I Start An Annuity With $5,000?

Yes, you can start an annuity with $5,000. However, it’s recommended to purchase a flexible premium deferred annuity. This type of annuity allows you to make additional contributions after your initial investment. It is beneficial if you plan to invest more money over time. Deferred annuities also offer tax-deferred growth, meaning you don’t pay taxes on the earnings until you withdraw them.

Understanding Flexible Premium Deferred Annuities

1. Initial Investment: A minimum of $5,000 to start.
2. Additional Contributions: Flexibility to add more funds.
3. Tax Benefits: Earnings grow tax-deferred.
4. Withdrawals: Taxed at regular income rates upon withdrawal.
5. Investment Options: Variety of choices depending on the insurer.

This annuity type suits those who wish to grow their investment over time and are looking for tax advantages.

Conclusion

Starting an annuity with $5,000 and opting for a flexible premium deferred annuity can be a smart financial move. It offers the flexibility of additional contributions and tax-deferred growth.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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