Annuities can be an excellent addition to your financial and retirement portfolio, but it’s essential to determine whether they’re the right fit for you and your financial goals. Here are some ways to know if annuities are right for your financial portfolio.
If you’re looking for a guaranteed income stream to supplement your retirement income, annuities can be a good option. However, if your retirement goals involve greater wealth growth or higher levels of liquidity, annuities may not be the best fit. It’s important to note that all guarantees are subject to the claims-paying ability of the insurer. Guarantees apply to minimum income from annuities and do not guarantee an investment return. Lifetime benefits are often an additional rider.
Ensure that your risk tolerance matches that of the annuities available to you. Annuities are generally considered low-risk investments. If you’re someone who is risk-averse and prefers a predictable income stream, annuities can be a good fit. However, if you’re in a situation where taking on more risk can help your retirement funds more, annuities may not be the best option.
Some types of annuities can provide tax-deferred growth, meaning you won’t pay taxes on your earnings until you withdraw them. If you’re looking for a tax-efficient way to save for retirement, annuities can be a good option. However, if you’re in a low tax bracket and won’t benefit from the tax-deferred growth, annuities may not address your tax concerns.
Make sure to evaluate the fees and charges. Annuities and their customized components can come with fees and charges that may not fit your financial situation. Make sure you understand the fees and charges associated with the annuity before investing. If the fees and charges are too high, it may not be worth it.
Annuities can be a wonderful retirement income solution for some, but it depends on what your financial goals are and what kind of annuity you end up purchasing.
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Annuities may be a key part of your financial picture, if you have questions about if annuities can work for you, contact us at (603) 261-3736 to get started with a financial professional.
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.