If the fear of outliving your retirement savings haunts you, then looking into income sources that can keep going as long as you do may not be such a bad idea. One way to potentially alleviate this financial anxiety is to consider an annuity as a part of your retirement plan.
Misinformation about annuities has floated for years, but in truth annuities can help diversify retirement portfolios and are one of the few financial solutions that address guaranteed income for life. If you’re interested in adding this to your retirement portfolio, let’s clarify three myths that might answer questions: 1) types of annuities, 2) how they work, and 3) which is right for you.
Myth #1: Annuities are for retirees only
Truth: Annuities can help many people trying to save for their retirement. If your employer-matched savings plans and IRA contributions are maxed out, deferred annuities can be a tax-efficient savings vehicle that can turn into income later.
Myth #2: Annuities are expensive
Truth: Many annuities are competitively priced and don’t charge a maintenance or annual fee. Optional riders provide additional benefits; however, these may come with an annual charge.
Myth #3: Annuities won’t supplement retirement income
Truth: Various payout options can provide a steady stream of income. Additionally, for an additional fee, income riders can help grow your income base for more guaranteed income.
Understanding the types of annuities available and which one’s right for you can be a huge undertaking, so a conversation with your financial professional will help you make a better informed decision. Call us today to talk: (603) 261-3736.
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.