Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Variable Annuities Fit Into Retirement Puzzle


In the Chicago Tribune Article “Annuities can be valuable slice of retirement pie,” Humberto Cruz describes he and his wife’s retirement plan using pension, Social Security, and four different annuities.  Both Social Security benefits and pension payments are forms of an immediate annuity, providing lifetime income at a set monthly amount.  The author and his wife also chose to add four annuities from insurance companies to their retirement plan.  They opted for one annuity that will increase 3% yearly for inflation to go along with the inflation adjusted Social Security payments.  With those guaranteed streams of lifetime income, the couple believes that they will have their basic expense needs met over both of their lifetimes.

They believe that investing in an income annuity is more like insurance than an investment because although you will not gain as much as you could from a riskier investment, you know that your payments will always be there.  Take the remainder of your savings and invest in something riskier to grow your funds even further, but make sure you have the annuity to cover basic expenses.  Variable annuities that include guaranteed lifetime withdrawal benefits are also a good way to generate retirement income.  You have the potential for better returns than with an income annuity, but will probably have a lower guaranteed payout rate.  Some other suggestions the author lists are systematic withdrawals, living off interest or dividends only if you can afford it, and using a bucket approach of splitting your money between short-term and long-term needs.

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).