Annuities Part of Five Step Retirement Plan
Symetra Financial’s press release “Five Steps to Retiring On Time” lists annuities as an important tool for retirement success. A recent survey conducted by Symetra and two partners showed that nearly half of pre-retirees (45 and older) have not determined how much income they will need to take them through the rest of their lives. Well over half of the pre-retirees didn’t think that they would be able to retire at their ideal retirement age. With this information, Symetra has issued five steps that they believe can lead you to a comfortable retirement.
First you should “create a plan.” Determine how much money you will need in retirement, including medical care, inflation, traveling, and other expenses. Many estimates show that people need about 80% of their pre-retirement income in retirement. The next step is to “manage and reduce your expenses now, before retirement.” Cut costs where you can and pay off your credit card debt before you lose your working income. The third step is to “diversify your investment portfolio.” While it still will not guarantee a profit or promise no losses, spreading your investments over different products and investment styles is the best way to protect against the market.
Next you should “continually evaluate your investments.” Changes in your life, health, job, and other areas make it important to reevaluate your goals and risk levels. The final step is to “consider creating a guaranteed income stream during retirement.” Annuities are one of the best products to ensure that you do not outlive your savings. Always check fixed annuity rates and variable rates because you can find great products out there to help you in retirement. By using a portion of your savings to purchase an annuity, you guarantee a monthly income stream coming in for life.
February 9th, 2010 at 2:15 pm
The best thing you can do is consult with a financial professional on what type of annuity is best for you. Each person is different and each case is specific to your needs so don’t just do something because you read online that it worked for someone else. Annuities are great though cause you can guarantee your income or later sell your annuity for cash. It’s good to have choices down the road.