Annuities: understanding the Benefits
Is Annuity Income Right For You?
Could Annuity Income Be Right For You?
Well, many factors affect whether an annuity could be a good choice in your retirement strategy. Different retirees have different needs and priorities. You need to take the time to learn if a certain product will fit your situation. How much you have in total assets, for instance, will impact whether an annuity could suit you. And if there’s an emergency, do you have access to money that isn’t in an annuity?
Additionally, what are your income needs? An annuity needs to be able to provide you with enough income to live off of and pay for your retirement living expenses. Figure out what your goals are in retirement. Fixed indexed annuities (or FIAs) hold onto your initial contribution so that it isn’t subject to a drop in the stock market. Some annuities may additionally provide a reasonable rate of return.*
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Your Annuity Income Options
It’s a good idea to get informed about annuities. Annuity income may be great for some retirees, but not a good solution for others. Remember, FIAs do protect your principal. They also could potentially provide a reasonable rate of return on your money. However, some retirees may be in favor of an investment that has a higher risk. Or their situation may simply not warrant an FIA. At our educational seminars, we can help you learn more about the different choices that may be available to you.
Income You Can Count On
Some financial vehicles can carry built-in risks. Some investments are certainly riskier than others. With an FIA your income may payout to you for your entire lifetime. Just think of how many retirement years you could have ahead of you. More and more retirees are living well into their 90s. Because of this, some retirees worry about their money lasting them the rest of their life. An FIA may be an option to consider if you want to secure your principal. A flow of income for the rest of your life may be an appealing and reassuring thing to you. And with so many options to choose from, there may be a type of FIA that works for you.
Interest Rate and Annuity Income
What you get in interest from an annuity depends on a few variables. First, different insurance companies offer different products. Each of these has its own set of rules and benefits. The rate you get could change from one annuity product to the next. At Turney Financial Group, LLC, we work with insurance companies that have good reputations and solid business models. A low-risk product may mean that you see a lower interest rate. However, it may offer more protection. There’s commonly a trade-off when it comes to retirement financial products. Reach out to us today, to learn more about what your choices and potential interest rates may be.
*Reasonable rate of return over time.