When it comes to retirement planning, a lot of folks have mixed emotions. For some, the process is like a nice walk in the park on a beautiful morning (one of my favorite pastimes!). For others, it’s like sprinting through the rain to get home before a storm hits.
Everyone’s goal should be to prepare for any potential financial storms, all while enjoying as many nice walks as possible. Much like the weather, our financial situations can change with little notice, which is why we must plan ahead of time.
- Do I want a tax-deferred investment?
Annuities allow your money to grow tax-free until you choose to receive periodic payments or opt for a lump sum.
- Do I want principal protection?
In an annuity, you have the choice of protecting your money against losses in the market.
- Do I want living benefits?
If an emergency comes up and you need to access your money, an annuity allows you to take money out, as long as it’s within the annuity’s guidelines.
The distribution process is customizable: If you want to receive payments of your money at set times instead of taking it all out, that’s an option.
- Do I want my family to receive a death benefit if I pass away?
You get to name a beneficiary, which guarantees that your money will go to the person(s) you select.
The money passes directly to your heirs, without going through probate court.
If you answered “yes” to the above questions, an annuity may be an option you want to consider for your money. If bones could be put into an annuity, it’s where I’d keep mine!
The next step is to get more information on how an annuity could fit into your retirement plan. A financial representative should assist you with this process.
Regardless of whether or not an annuity is right for you, I hope you at least start thinking about the proper way to plan for the unexpected storms that may come. Then you can tell me about your nice walk in the park and the peace of mind that comes with it.