A recent survey taken on behalf of the Indexed Annuity Leadership Council (IALC) asked more than 6,800 people with a wide range of wealth about retirement preparedness and annuity products. Insurance News Net’s Linda Koco summarized the study...
An annuity is a contract between you (the annuity owner) and an insurance company. In return for your payment, the insurance company agrees to provide either a regular stream of income, the right to withdraw up to a certain percentage per year, or even a lump sum payment at some future time (generally, once you retire or pass age 59 1/2).
For some, annuities can complement a total retirement income strategy to supplement other sources of money during retirement. Annuities have advantages such as allowing you to pay in unlimited premiums and they grow compound tax-deferred. (Upon withdrawals,** you will pay taxes on interest earned and the principal if the annuity was purchased with pre-tax dollars.) However, annuities are not for everyone.
There are different types of annuities to meet the specific needs of individual retirees and pre-retirees. Annuity FYI can help simplify the selection process.
Help me determine which may be the best annuity for my financial situation.
What type of retiree or pre-retiree are you? Take this self-assessment consisting of ten statements designed to help you decide what may be the best use of your retirement dollars.
You want to be well-informed to put your money to work in the best way for your situation. Annuity FYI suggests that, prior to making a purchase decision about an annuity, you consider some ideas about the product, the insurance company behind it, and the licensed professional selling it.
Annuity FYI regularly publishes warnings about potential pitfalls in purchasing an annuity. Read this before you purchase!
What type of annuity might best suit your situation? This guide explains the main types of annuities and identifies what to look for in each.
This web page has been reviewed for compliance.Document reference: #1500261-2
** Withdrawals are subject to income tax and prior to age 59 1/2 a 10% federal penalty tax may apply.
Although fixed annuity rates are historically low, fixed annuity products still carry value and may provide some financial stability to retirees. In The Motley Fool’s “Fixed Annuity Rates: Dependable Monthly Income,” article author Jordan...
NBC News said that running out of money in retirement is one of the biggest concerns facing many Americans today.1 In the Sharon Epperson article, “Worried About Outliving Retirement Funds? Consider This,” the NBC News contributor says that...
“Charitable gift annuities are the gifts that keep on giving,” according to Stan Haithcock in an article for Marketwatch.(1) Gift annuities are much like the typical annuity product that a person may be familiar with. They work in a...
There is an ongoing argument in the financial world about which is better: an annuity that guarantees a lifetime payout* or a 4% withdrawal scheduled from your retirement savings or investments. George Mason University’s Mark Warshawsky (1)...
U.S. workers are concerned that they will run out of money in retirement, and for good reason. The Insured Retirement Institute asked Baby Boomers if they were confident that they would have enough money to carry them through retirement and …...
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