Annuities
Understand The Benefits
UNDERSTANDING
Annuity Benefits
Could an annuity be the right option for you? Well, you can review annuity benefits to try and determine this. It’s important to compare those benefits to your current retirement accounts and consider what your financial goals for the future are. How much money do you want to keep secure, and how much would you be willing to put at risk? Your needs could also change potentially in the future.
One benefit of annuities is how they allow you to keep your principal safe, regardless of what’s happening in the stock market. Some types of annuities, such as fixed indexed annuities (or FIAs) also provide a reasonable rate of return,** giving you the potential to earn interest while still keeping your money safe. Retirees often use annuities to also get a lifetime income, and annuity benefits could include items such as income riders, which allow you to increase that income to compensate for inflation.
Get Educated About Annuity Benefits
You can evaluate your various choices once you’ve educated yourself about your retirement options. Getting educated is important to your financial future. Your money should work for you, so take the time to learn how to make that happen. You can attend one of our educational dinner workshops or online events to learn more.
Annuities are products offered through an insurance company. You put money into an account with the company (usually a minimum amount of $20,000) and the insurance company attempts to grow this money over a period of time. You can begin taking an income from your annuity once this phase ends. This phase usually lasts around 5 – 10 years but could be longer if you choose.
The insurance company must have reserves to cover its claims. The protection of your money is due to the insurance company’s stability. The benefit here is that your money is protected by the insurance company, and is safe from the risks of the market.
With an FIA, your principal is safe no matter what happens in the stock market. An FIA is linked with a market index, and when the index goes up, your FIA captures some of that growth. However, you don’t lose money when that index goes down. Some annuities also offer a set interest rate on your money.
Many people use FIAs or other annuities to provide themselves with income for life. You can set a specific amount of income to receive each month from your annuity. It’s not uncommon nowadays for people to live well into their 90’s. Because of this, many retirees are concerned about outliving their retirement savings. If this possibility worries you, look into an FIA. These products could help you secure an income that lasts your whole life.
you might be asking yourself,
What About Return?
Your rate of return varies depending on a few factors. Different products offer different benefits and options, and the company that offers the annuity might have different terms in their contract. Here at AGM Secure Money, we can help you review your potential interest rate choices and retirement options. The issuing insurance company protects your principal, remember. And annuity benefits may include a reasonable rate of return.** Many would consider having both of those benefits the “best of both worlds.”
