If you have ever wondered about or considered an annuity, now might be the perfect time to act. There are many reasons to add an annuity to your portfolio. Interest rates continue to rise, which makes annuities more attractive than ever. There is also increasing uncertainty in the market, and no one wants to face losses like we have seen in the past. Annuities are a proven, stable product that provides protection and certainty.
Important Annuity Facts:
- As pension plans have nearly disappeared, annuities have become a natural replacement. If you are in or nearing retirement – a constant, guaranteed income is vital; the primary purpose of an annuity is to provide income in retirement.
- Don’t be afraid of the term annuity – products have improved dramatically over the years. When working with a trusted advisor, you can select a plan that offers protection of the principal and gives you a guaranteed income for life.
- None of us know how long we will live, and no one wants to outlive their retirement income. Insurance is the transference of risk. An annuity is an insurance product. When you own an annuity, you are transferring the risk of longevity to the insurance company. Did you know there are nearly twice as many centenarians today than there were 20 years ago?
- The current hike in interest rates has a very positive impact on annuity-guaranteed income compared to just a few years ago. Every dollar counts when living on a fixed income, which means now is a great time to add an annuity to your portfolio.
- You can participate in market growth and avoid the risk of losing your principal.
- Unlike many other savings vehicles, you can access a portion of your principal without penalty.
- An annuity can be the star in an unpredictable and volatile market environment. You have principal guarantees and downside protection. If there is a market downturn, you are especially vulnerable if you are near or in retirement.
- Many annuities have what is known as a “confinement Rider.” This Rider can DOUBLE your payout if you cannot perform 2 of the 6 activities of daily living.
It’s essential to be open-minded and consider how effective annuities can be at protecting your assets, providing income you can’t outlive, and building a secure and worry-free retirement. Annuities do not have to be complex or complicated. You want to ensure you have the proper contract for you and your goals, and it is essential to understand your options by exploring the pros and cons. Call me today, and let’s talk about keeping a portion of your assets in a financial vehicle that will keep your income going regardless of what the market does.
