Saving money is simple, in theory, yet in execution it is never easy. If it were uncomplicated and easy to save money, there would be no need for banks and lending institutions to give credit cards, lines of credit and many other buy-now-pay-later mechanisms in place for today's consumers. But saving money isn't always for the end purpose of making a major purchase in the near future, such as a car, a vacation or a down payment on a condominium. Saving money for your later years, when you're retired, is of paramount importance today. Being prepared for the future and any potentialities it may bring is a serious consideration and requires preparation and of course, money.
In the last 30 to 40 years the retirement plan landscape has changed dramatically. Today 401(k) plans are by far the most popular employer sponsored retirement plan. However, they are missing a critical component their retirement plan predecessors contained - access to a source of guaranteed lifetime income. So, what are your options for guaranteed lifetime income in your retirement years? An annuity could be exactly what you are looking for.
Many people have made annuities part of their retirement plan - and for good reason. Annuities are unique because of their combination of tax deferral and the opportunity for a guaranteed stream of income payments. While it is literally impossible to predict market performance, inflation, continual cost of living increases, future life events or ultimately how long you'll live, annuities can help take these retirement risks out of the equation by providing guarantees that protect your retirement income needs. All guarantees are based on the continued claims paying ability of the issuing company and, on variable annuities, do not apply to the performance of the variable sub-accounts, which will vary with market conditions.
To put it simply, an annuity is a contract between you and an insurance company. You pay the insurance company one or more purchase payments and in return, you'll have access to convenient retirement income payout features and any optional benefits, depending on the type of annuity purchased.
There are two popular types of annuities - fixed and variable. The main difference is based on how the purchase payments are allocated. A financial adviser who is familiar with your financial goals, objectives and risk tolerance can help you determine which type of annuity might be right for you. Let's quickly look at some of the benefits of either of these annuities.
Fixed annuities offer a guaranteed rate of return. An insurance company will guarantee a minimum interest rate you'll receive - regardless of changing market conditions. Fixed annuities also offer a guaranteed principle that is adjusted for any withdrawals. The payment options for fixed annuities are also very flexible, you can usually choose between equal payments over the course of the rest of your life, or, you can take the alternate option which is to take a lump sum payment.
Variable annuities offer the chance of growth potential as the value of the annuity may fluctuate based on it's investments, this can range from conservative to aggressive. Diversity is also an option as you may choose from a variety of investments and enjoy tax free transfers between investments. Like the fixed annuity option, you can also choose between lump sum or equal regular payments, however, variable annuities also offer options for a variable or fixed income stream.
So, with all of the things your money is expected to cover and take care of right now, how can you begin saving for the future? Thankfully, there are many options in place for income in your retirement or elderly years. Annuities could be the answer you've been looking for. It's in your best interest to sit down with an expert at your financial institution, or your insurance agent, and discuss your options regarding retirement income today.
In the last 30 to 40 years the retirement plan landscape has changed dramatically. Today 401(k) plans are by far the most popular employer sponsored retirement plan. However, they are missing a critical component their retirement plan predecessors contained - access to a source of guaranteed lifetime income. So, what are your options for guaranteed lifetime income in your retirement years? An annuity could be exactly what you are looking for.
Many people have made annuities part of their retirement plan - and for good reason. Annuities are unique because of their combination of tax deferral and the opportunity for a guaranteed stream of income payments. While it is literally impossible to predict market performance, inflation, continual cost of living increases, future life events or ultimately how long you'll live, annuities can help take these retirement risks out of the equation by providing guarantees that protect your retirement income needs. All guarantees are based on the continued claims paying ability of the issuing company and, on variable annuities, do not apply to the performance of the variable sub-accounts, which will vary with market conditions.
To put it simply, an annuity is a contract between you and an insurance company. You pay the insurance company one or more purchase payments and in return, you'll have access to convenient retirement income payout features and any optional benefits, depending on the type of annuity purchased.
There are two popular types of annuities - fixed and variable. The main difference is based on how the purchase payments are allocated. A financial adviser who is familiar with your financial goals, objectives and risk tolerance can help you determine which type of annuity might be right for you. Let's quickly look at some of the benefits of either of these annuities.
Fixed annuities offer a guaranteed rate of return. An insurance company will guarantee a minimum interest rate you'll receive - regardless of changing market conditions. Fixed annuities also offer a guaranteed principle that is adjusted for any withdrawals. The payment options for fixed annuities are also very flexible, you can usually choose between equal payments over the course of the rest of your life, or, you can take the alternate option which is to take a lump sum payment.
Variable annuities offer the chance of growth potential as the value of the annuity may fluctuate based on it's investments, this can range from conservative to aggressive. Diversity is also an option as you may choose from a variety of investments and enjoy tax free transfers between investments. Like the fixed annuity option, you can also choose between lump sum or equal regular payments, however, variable annuities also offer options for a variable or fixed income stream.
So, with all of the things your money is expected to cover and take care of right now, how can you begin saving for the future? Thankfully, there are many options in place for income in your retirement or elderly years. Annuities could be the answer you've been looking for. It's in your best interest to sit down with an expert at your financial institution, or your insurance agent, and discuss your options regarding retirement income today.
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1 comment:
Really good post for anyone who want to some special information. I want info about retirement options, I have just arrived at your post then I run across your blog. It's very helpful for me, thanks for sharing.
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