People are retiring younger, living longer and have a desire for a better life in their later years. In many cases their savings are low or non-existent and pensions are scarce. The markets are constantly changing. many investors find they need fixed assets in their portfolios as they near retirement because of their desire for stability. Some people turn to CDs for this dependability, but many have invested in fixed annuities. Fixed annuities provide a competitive and predictable yield with no sales charge and no annual expenses. The money invested is guaranteed by the insurance company issuing the annuity and in most cases there is a money back guarantee of principal should the need arise for a full withdrawal of the funds. in addition, the interest from a tax-deferred annuity is not taxed until it is withdrawn.
At retirement time, the annuity can be annuitized for a lifetime income for predictable periodic payments to pay bills, medical expenses or take vacations.
Before investing in an annuity, you should consider:
- How much total income you need
- Other sources of income you have to meet retirement needs
- Do you need income for anyone other than yourself
Always consult with your personal financial advisor before investing in an annuity.
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