New Strategies to Lock In Steady Income for Life

The big unknown: Will you run out of money if you live longer than you expected? In the past, pensions provided the major source of guaranteed lifetime income. But with fewer people retiring with pensions, the idea of including an annuity as part of a retirement portfolio is gaining support among financial planners, mutual fund companies, brokerage houses and the academic community.

Create a Paycheck With an Annuity

Annuity is a long-term investment designed for retirement and is exempted from tax. It is however taxable when withdrawn before the age of 59 and half years.

The variable annuity provides guarantee for contract holders to premium and life income and the continuation of benefits for joint survivors. 

A recent Wharton School/New York Life study concluded that "lifetime income annuities are the most cost-effective and secure asset class for generating guaranteed retirement income for life."

Here's the good side of income annuities: In exchange for a sizable chunk of your money, they'll provide you with an income -- for life. This is attractive because we don't know how long we'll live. You might have a solid portfolio upon retiring at age 65, but what if you end up living to age 105? Will it be able to support you for 40 years, instead of the 20 or so years you might more reasonably be expected to live?
Also, if you're investing mainly in stocks, you simply don't know how well they'll do in the future. Your future nest egg is far from certain. With income annuities, your income might well be lower than what you'd be able to withdraw from your stock/bond portfolio, but at least it will be guaranteed to last your whole life.

 

Don't Just Shop, Implement a Solid Retirement Strategy

Purchasing an annuity is a big decision. Online research is a good start, but prudent investors should discuss all their options and risks with an independent financial advisor. Request a free, no-obligation consultation today, along with a report of current rates on brand-name annuities. 

www.MintcoFinancial.com