Safeguarding Retirement Through Immediate Annuities
For those about to retire, the idea of relying on a retirement fund closely linked to the stock market can be a190-840 frightening prospect. Now more than ever, the stock market's volatility can be the difference between someone's comfortable retirement and a depleted nest egg requiring a delayed retirement. Because of this, it's not a good time to be too confident with the security of a 401(k) or IRA without turning at least some of those funds into immediate annuities.
There are several reasons you should choose immediate annuities:1.Stability - They provide stable income during retirement and do not rely on the stock market and its wild fluctuations.2.Control - Your money isn't taken from your account and essentially gambled in the markets but is maintained in an account for your use. This level of control is the closest to a pension plan you'll ever get.3.Consistency - You can count on a payment every month and there's a guaranteed interest rate on that initial investment.4.Simplicity - You aren't checking accounts, moving funds and chatting with portfolio managers, you're just taking your check190-847 to the bank each month.
So, how does this work? An immediate annuity is purchased through an insurance company and is similar to other insurance policies with regard to how its paid. It requires the holder pay a "premium," or a lump sum and they guarantee an annual payment based on that sum. It's very similar to a pension plan. However, if you die with a balance on your annuity, the insurance company will keep the remainder of that amount. But, you never know how long you'll live and the insurer could continue paying you each month for a much longer period than they ever thought.
According to the National Center for Health Statistics, someone who retires at 65 will need to have enough money to live on for 20-30 years. And, according to the Employee Benefit Research Institute (EBRI), less than 50% of the population has plans for retirement that will fully support them.
Planning is key. It's also important to ensure the insurance company you choose for your immediate annuity is highly rated and well regarded. As with any financial service, there are disreputable salespeople190-849 and scammers looking to make a quick buck. But, doing your homework, asking lots of questions and shopping around will be invaluable as you look to secure your retirement through immediate annuities
There are several reasons you should choose immediate annuities:1.Stability - They provide stable income during retirement and do not rely on the stock market and its wild fluctuations.2.Control - Your money isn't taken from your account and essentially gambled in the markets but is maintained in an account for your use. This level of control is the closest to a pension plan you'll ever get.3.Consistency - You can count on a payment every month and there's a guaranteed interest rate on that initial investment.4.Simplicity - You aren't checking accounts, moving funds and chatting with portfolio managers, you're just taking your check190-847 to the bank each month.
So, how does this work? An immediate annuity is purchased through an insurance company and is similar to other insurance policies with regard to how its paid. It requires the holder pay a "premium," or a lump sum and they guarantee an annual payment based on that sum. It's very similar to a pension plan. However, if you die with a balance on your annuity, the insurance company will keep the remainder of that amount. But, you never know how long you'll live and the insurer could continue paying you each month for a much longer period than they ever thought.
According to the National Center for Health Statistics, someone who retires at 65 will need to have enough money to live on for 20-30 years. And, according to the Employee Benefit Research Institute (EBRI), less than 50% of the population has plans for retirement that will fully support them.
Planning is key. It's also important to ensure the insurance company you choose for your immediate annuity is highly rated and well regarded. As with any financial service, there are disreputable salespeople190-849 and scammers looking to make a quick buck. But, doing your homework, asking lots of questions and shopping around will be invaluable as you look to secure your retirement through immediate annuities
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