Annuities: Calm in the Storm

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.

I’m going to break down a simple series of questions that can help determine if an annuity is a good asset for your retirement plan.
Ask yourself these questions:

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.

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.

3 Comments

  1. Leon L Herndon on March 7, 2013

    How peaceful would it be sleeping at night,knowing that your principal is protected, your family’s future is protected, and you are on track to living the retirement lifestyle you want to live? How good does it feel knowing you have options?

    Reply
  2. john simms on March 10, 2013

    Annuities!! What all companies should offer instead of their current 401k plans.

    Reply
  3. Anonymous on May 1, 2013

    I am always looking online for tips that can help me. Thanks!

    Reply

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