Oncken Insurance Agency, P.C. Blog
Annuities are popular in the US, especially during the Great Depression, when the concern about the volatility of the stock market began to endanger people’s retirement. Now that pensions plans are not as common, plenty of retirees prefer annuities to replace streams of income.
An annuity is a financial contract between you and your insurance company and is often used as a retirement plan. You can fund your annuity by paying a lump sum amount or making smaller regular payments over time. After you retire, you may get your money in a similar manner; through small payments or “annuities” or in a lump sum amount.
If you only have a few years before retirement, achieving your goals and dreams will need both of your efforts. You will encounter the benefits of saving for retirement, but there will be times where you won’t meet eye-to-eye on particular financial decisions. To avoid specific arguments, take note of these tips, and plan ahead of time.
“Annuities produce a stream of income you cannot outlive,” is a sentence insurance companies are prone to throwing around, and it can be real. Receipts from your annuities can match, or even outmatch, your life expectancy. The safety of guaranteed, lifetime income sounds highly enticing, but annuities are some of the most misunderstood products around, having so many types and arrangements.
Welcome to adulthood, there are bills to pay and responsibilities to keep. Now, don’t worry, it’s not all bad. It’s just a part of life. The cool thing about some of the things you pay for as an adult is the benefits you get in the future. For example, if you find yourself in an accident, your insurance should cover that. Something similar is an annuity, which you will know more about in this article, so let’s start.
If you are worried that your savings now may not be enough to give you a comfortable life during retirement, there are passive income strategies that can bring your wealth later on.
Here are 4 ideas that are worth considering:
If you are thinking of purchasing an annuity for your retirement income, then you might enjoy a lot of benefits from it. If you are looking for a way to generate more income for your retirement years, then you should know that your annuity provider will promise you a certain amount of income after a certain period of time. This guarantee is given in exchange for the sum of money. While annuities may have some advantages like complex rules, it has a number of benefits that you need to know more about.