Subscribe to our newsletter for safe money retirement tips and updates.

Search

Dispelling Retirement Myths with Annuities

When planning for retirement, it can be challenging to ascertain the money needed to enjoy your golden years. Because you can’t know the number of years you will live, it can be challenging to determine how much money you need. The closer you get to retiring from the workforce, no doubt you will feel increasing pressure to diversify assets with a multitude of income streams. To ensure a successful retirement, you can turn to tax-deferred investments in the form of annuities. While the annuity marketplace may feel complex, shrouded with misunderstandings and myths, our experts are here to separate fact from fiction and provide the answers you need.

  • Not all annuities feature high fees unless you are looking for more insurance. As an insurance contract, fees are part of the process of annuities. To ensure you will receive a guaranteed income throughout retirement, regardless of your lifespan, it all comes at a cost in the form of fees. However, an annuity can go to great lengths to lower concerns regarding market fluctuations and future changes. The trade-off of fees provides an income guarantee you’d be hard-pressed to find elsewhere.
  • Contrary to popular belief, once you buy an annuity, you are not necessarily tied to it forever. Furthermore, many annuities provide a “surrender period” in which you may withdraw money before the account is converted to an income stream from a balance. Life often happens, including unplanned emergencies and other situations that call for cash. Most annuities will allow individuals to withdraw a maximum of 10% of their account balance, free of charge, throughout the surrender period.
  • Although annuities can often serve as a vehicle for retirement, they aren’t only available for retirees. An annuity works as a supplemental retirement plan well before your 50s. In short, an annuity is there to help diversify your portfolio to provide multiple income sources for use in your retirement or even earlier. Individuals can compound bond income over time without annual tax hits by deferring investment income with an annuity, especially if you already met your 401(k) ‘s tax-deferred account limit.
  • When diversifying a portfolio, no one should be suggesting a large amount of money goes toward an annuity. Only a small percentage should go toward the purchase of an annuity, especially if you plan to use it to pay a particular bill or debt. Because diversification is the key, annuities do not serve to tie your money up in one place but rather balance it into a bigger picture.

Contact Information:
Email: [email protected]
Phone: 4238070050

Get the FREE E-Book

E-Book Title Here

The Certified Safe Money advantage includes access to valuable resources to help you make the right decisions for your retirement goals – because we believe knowledge is power. Browse our current e-books below and prepare yourself for the future.

The Certified Safe Money advantage includes access to valuable resources to help

author image

Amanda Amy Brown

Get the FREE E-Book

At Certified Safe Money, we empower you with valuable resources to make informed decisions for your retirement goals. We believe knowledge is the key to unlocking a secure future. Explore our current e-books and equip yourself with the insights you need to plan for the retirement you deserve.

At Certified Safe Money, we empower you with valuable resources to make informed decisions for

Are you a Safe Money or Retirement expert? Apply for a free listing!

Are you a Safe Money or Retirement expert? Apply for a free listing!

Find The Most Credible,
Highest-Rated Safe Money Advisors

If You Are Nearing Retirement Or Already Retired, Finding The Right Financial Advisor Who Fits Your Needs Doesn’t Have To Be Complicated.

Our Free Tool Matches You With The Highest-Rated Financial Advisors In Your Area.

About the CDK User

Todd Carmack

Financial Advisor / Fiduciary

I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and

Many individuals find the prospect of a steady income stream for the rest of their lives enticing. As long as annuities have been around, they

Have you ever wondered whether you should gift cash or an appreciated asset to your loved ones or to a charitable organization you admire? In

The stock market has been through a lot in the past few years. Following the March 2020 market meltdown, stock values have achieved new all-time

Subscribe to receive Safe Money retirement tips and updates.

Subscribe to receive Safe Money retirement tips and updates.

This field is for validation purposes and should be left unchanged.

Enter your Information to Download Your E-Book

Apply for a free listing

If you're a Licensed Agent and a stellar record for delivering exceptional customer service, we invite you to apply for a free listing.

"*" indicates required fields

Checkbox*
This field is for validation purposes and should be left unchanged.