According to Annuity.org, there are multiple reasons Americans are investing billions into annuities.
There’s much talk around annuities regarding retirement planning, which leaves the conversation open to a lot of questions and potential misunderstandings. Be prepared that selecting to have an annuity in your portfolio should only happen after an informed discussion with your financial or insurance professional.
Ever wonder why so many Americans have purchased annuities? Check these four reasons:
- Guaranteed Income for Life – When you purchase an annuity, you can set up part of your retirement savings as a stream of payments that are guaranteed by the insurance company that issues it. Receiving this income for the remainder of your lifetime ensures you don’t outlive your money.
- Tax-Deferred Growth – We’re pretty sure that no one likes paying taxes, but we all have to do it at some point. With an annuity your money grows tax-free until you withdrawal it, including any investments, dividends and interest. So even though you have to pay the tax, you’re growing your nest egg simultaneously.
- Long-Term Care (LTC) Benefits – There could be a time in your future when LTC services are needed, and it’s no surprise that these costs can go beyond what you had planned. If you invested in an annuity with an optional rider, you might be able to use the income for long-term care coverage or transfer money from your annuity to a LTC policy’s premium.
- Immediate Income Options – Investing for the long-term doesn’t always work, so this is where a single premium income annuity (SPIA) provides a more timely payout since they’re annuitized almost immediately. Income annuities are intended to provide guaranteed income, not help you accumulate retirement savings, so talk through your options before making your selection.
If you search online, you’ll discover a plethora of opinions and frequently asked questions regarding annuities. This is a good indicator that choosing this investment option shouldn’t be done without due diligence and at the guidance of a knowledgeable financial or insurance professional.
Creating a retirement strategy takes work and is probably best done with the help of an industry expert – be it a financial professional or a licensed insurance agent. If you’re interested in annuities, call us at (603) 261-3736 and we’ll help guide you in the right direction.
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.