Pension: How to create your own pension

Imagine a retirement-savings well that never runs dry, no matter how long you live. If that's the dream of future retirees, why are annuities, which make that very promise, such a minuscule part of our collective nest egg?

In exchange for a lump sum, annuities guarantee retirees regular payments for the rest of their lives. Sounds attractive, but investors have long shunned annuities, citing high fees, low returns and inability to bequeath the money to heirs. Worst of all, there's the "bus" risk -- that is, the chance of getting hit by one, or meeting some other untimely demise and not getting your money's worth. 

As an investment, an annuity just doesn't stack up.

But if your objective is to ensure enough money to live on no matter how long you live -- think consumption instead of accumulation -- then an annuity is a no-brainer.

 

Basically when you get buy annuities, you are buying your own pension.

 

An annuity can be used to assure that you’ll be able to cover key nondiscretionary expenses, no matter how long you live or how your portfolio fares. Start with a budget projecting monthly costs for shelter, food, utilities, and health care; then subtract Social Security and any other expected guaranteed income payments. The gap figure could be plugged with an annuity.

 

Annuities have other advantages, in addition to their lifetime guarantees. They're very user-friendly, because your monthly paycheck gets automatically deposited in your checking account. You don't need to make decisions about how much to withdraw or how to invest, which can protect against mistakes and fraud that can happen in your later years if you become less able to manage your money.

 

Deciding how to generate retirement income from your savings is one of the most important financial decisions you'll ever make. It's well worth your time to consider all your options.

 

Mintco Financial Team of Advisors can help you to build your own pension. Do not delay what you can do today, call us at 813-964-7100 and start you plan to build your own pension.

 

Visit our website for more info:http://www.mintcofinancial.com/quotes/annuity-quote/