Immediate Annuities |
Guaranteed Income For Life
Most of us will live many years into retirement. In fact, the average 60 year old will live on
for an additional 22 years. The
percentage of retirees living longer, healthier lives continues to grow and as
medical technology continues to improve, the expectation is that these numbers
will widen.
When you buy an immediate annuity from an insurance
company, you are exchanging a lump sum of money for the guarantee that you will
receive payments for the either the rest of your life or a specific period of
time. The amount you receive is
calculated by your age, gender and how much you invest. It is also calculated on whether you select
payments for life only, lifetime with a guaranteed period, (all will not be
lost if you die prematurely), or a shorter specified period (i.e. - 10 yrs, 20
yrs, etc).
Things to consider before buying an immediate annuity: Inflation
Access To Your Money
Financial advisors, planners and economists’ all agree
that you should only use a portion of your retirement savings to purchase an
immediate annuity. Reason being: once you purchase an immediate annuity, you
hand over the proceeds and give up control to the insurance company. Having other cash and investments on hand
allows for liquidity should emergencies arise.
Simply put….an immediate annuity cannot be cashed in, you may not access
cash from it, it is irrevocable once done.
Immediate annuities are a sound financial planning tool,
but they may not be suitable for all investors.
Our professional staff will work with you to determine if an immediate
annuity is appropriate for your situation. |