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Immediate Annuities Save Retirement


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Unfortunately government Social Security doesn’t look like it is going to give retirees the retirement they expected in the future, so wise investors are looking for ways to supplement or replace that lost income.  “Save Your Retirement From Certain Doom” by Dan Caplinger of The Motley Fool talks about a few options for replacing that income.  A recent Social Security Administration update showed that while Medicare should remain solvent longer than originally expected, Social Security looks to pay out more in benefits this year than it will receive for the first time in over two decades.  The author recommends the use of annuities to help generate income in retirement that will cover Social Security shortfalls.

Immediate annuities provide income streams over your lifetime.  After buying the investment from an insurance company, your fixed payment becomes a monthly stream of income payments that vary based on life expectancies.  Annuities may be the only dependable way to guarantee your monthly income with the uncertainty linked to Social Security and private pension plans.  The author also believes that retirees should take more risk in order to profit from higher returns.  He suggests dividend stocks like Annaly Capital, growth stocks like Netflix, and higher-yielding bonds.  While he acknowledges that any new plan should be used carefully, these options seem to make for a greater chance of future financial security than relying on Social Security.

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