If the fear of outliving your retirement savings haunts you, then looking into income sources that can keep going as long as you do may not be such a bad idea. One way to potentially alleviate this financial anxiety is to consider an annuity as a part of your retirement plan.
Misinformation about annuities has floated for years, but in truth annuities can help diversify retirement portfolios and are one of the few financial solutions that address guaranteed income for life. If you're interested in adding this to your retirement portfolio, let's clarify three myths that might answer questions: 1) types of annuities, 2) how they work, and 3) which is right for you.
Myth #1: Annuities are for retirees only
Truth: Annuities can help many people trying to save for their retirement. If your employer-matched savings plans and IRA contributions are maxed out, deferred annuities can be a tax-efficient savings vehicle that can turn into income later.
Myth #2: Annuities are expensive
Truth: Many annuities are competitively priced and don’t charge a maintenance or annual fee. Optional riders provide additional benefits; however, these may come with an annual charge.
Myth #3: Annuities won’t supplement retirement income
Truth: Various payout options can provide a steady stream of income. Additionally, for an additional fee, income riders can help grow your income base for more guaranteed income.
Understanding the types of annuities available and which one’s right for you can be a huge undertaking, so a conversation with our team will help you make a better-informed decision.
This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.
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