What Is An Annuity?
An annuity is an investment solution that provides safe, tax-deferred growth of your retirement nest egg. Annuities are low-risk, and can provide guaranteed, income for life when you retire. Many types of annuities exist and each one has its own set of benefits. These include: fixed, variable, immediate, deferred & hybrid. It is suggested that you schedule a free consultation with a professional to understand which solution is right for you before your purchase. Annuities are designed to keep you from outliving your retirement.
Many brokers will tell you to keep your money in the stock market and continue to let it ride. But is that really the best way to handle your money during retirement? the stock market fluctuates. Yes, you may win big, but you also might loss big and never recover. The point of an annuity is to help you take part of that nest egg you’ve developed over years of hard work and keep it safe over time. Unlike the stock market, an annuity doesn’t fluctuate. It is a low-risk solution to a high risk problem.
You may be worried the decline of your personal health. We can’t predict when or where an incident may occur that could potential put you are your spouse in a nursing home situation. Most couples are not prepared for this type of incident and end up losing thousands of dollars in what is called a “nursing home spend-down.” There are annuity plans that include clauses for protecting your finances in the case of one of these spend-down situations so that you won’t outlive the money you’ve earned and can continue to provide the best care of you and your spouse.
- Myth: My money is not protected against market fluctuation.
Truth: Annuities is one of the few products that can truly protect your money from a market downfall.
- Myth: My money is locked up and I cannot gain access.
Truth: There are several liquidity options available with newer EIA/ FIA annuity plans that give you full control.
- Myth: If I go into a nursing home I’ll lose all my money.
Truth: New nursing home income doublers and other guarantees make sure you’ll never run out of money.
Having access to your financial assets is important. though for the most part annuities are not considered liquid assets, there are ways to structure your annuity so that you have access to the amounts you need when you need it. If your concerned about outliving your retirement then a more fixed liquidity of your finances may be something to consider.
Annuities are actually the only investments you can make that truly guarantee and income for life. By buying into an annuity you can essentially receive much more of an income than any pension of social security plan can provide. Annuities also give you the freedom to organize your payment options so that your not relying on a systematic withdrawal that could eventually drain your accounts if you were to live longer than your funds allowed. It is the safest choice you can make.