The Insurance News Net article “Plan Ahead and Secure a Future with Retirement Annuities,” by John Mulcahy, gives some annuity basics to baby boomers looking for a secure retirement. Retirees look to financial advisors to help them sift through all of the investment options available. Since advisors literally have some retirees entire financial future in their hands, it is imperative that the right investment is found for each retiree. Since the majority of people are living longer due to healthier lifestyles and medical advances, retirement annuities are an important investment.
Retirement annuities are insurance products best used as a part of one’s retirement portfolio. They guarantee lifetime income, or for a specified period of time if you prefer, and are popular with investors looking for steady streams of money. Annuities work much like an old traditional pension, where a lump sum payment occurs up front and money is paid out monthly, quarterly, or each year. Some annuities even offer a lump sum payout rather than payments. Your payments vary based on a number of factors, so it is important to be aware of annuity rates and everything else that factors into your payments.
Deferred and immediate annuities are the two basic types. Your deferred annuity accumulates money tax-deferred until you need the payouts. The best immediate annuities can be found through a reputable financial advisor and offer you payments as soon as you purchase the annuity. Whether you choose a variable or fixed annuity greatly changes your terms and can make your annuity rates vastly different depending on the market. New and improved annuities are constantly entering the marketplace, making it important to strategically plan your retirement with an expert.