A retirement annuity is an insurance contract that pays out specified benefits after you retire. The term “retirement annuity” refers to a variety of annuities. Annuities for retirement can give several advantages, including: • A lifetime income guarantee • Earn interest while reducing your investment risk in the stock market. • Provide tax-advantaged growth. • Lower your monthly income tax burden. • Cover the costs of long-term care. • Enroll in Medicaid without sacrificing assets. How Does An Annuity For Retirement Work? • Lifetime Income: A retirement annuity can guarantee a lifetime income, meaning that you will have enough money to support your essential living expenditures no matter how long you live. • Helps You Stay Up With Inflation: A retirement annuity can also help you keep up with inflation. The expense of living rises with time, and your income must increase in tandem. A retirement annuity might help you keep your purchasing power by providing you with an income that grows each year. • Stock Market Risk: Your money is invested to protect it against stock market risk with a retirement annuity, meaning you’ll be able to live comfortably even if the stock market crashes. • Earn Interest: Retirement annuities give you the option of earning interest on your money, which might help you grow your money while keeping it safe from stock market fluctuations. • Tax-Deferred Growth: Another benefit of a retirement annuity is that it allows you to grow your money tax-free. This implies that you won’t have to pay taxes on your investment until you take it out. • Pay for Long-Term Care Expenses: Retirement annuities can also pay for long-term care expenses. This can help you protect your assets and prevent them from being utilized to cover the fees of a nursing home or assisted living facility. • Participate In Medicaid Without Giving Up Assets: Finally, a retirement annuity can enable you to participate in Medicaid without giving up your assets. If you need to qualify for long-term care benefits, this can be a helpful tool. Retirement Annuity Plans • Fixed Annuities: Fixed annuities pay a fixed interest rate for a specified time. • Variable Annuities: A variable annuity has more potential for bigger profits and a higher risk. • Indexed Annuities: Indexed annuities allow you to earn larger profits while still protecting against stock market risk. • Long-Term Care Annuities: This type of annuity covers long-term care costs. Every financial decision includes advantages and disadvantages, and buying a retirement annuity is no exception. Whether buying a retirement annuity is a good idea will be based on your situation and financial goals.
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Bio:
Todd Carmack grew up in Dubuque, Iowa, where he learned the concepts of hard work and the value of a dollar. Todd spent years in Boy Scouts and achieved the honor of Eagle Scout. Todd graduated from Iowa State University, moved to Chicago, spent a few years managing restaurants, and started working in financial services and insurance, helping families prepare for the high cost of college for their children. After spending years in the insurance industry, Todd moved to Arizona and started working with Federal Employees, offing education and options on their benefits. Becoming a Financial Advisor / Fiduciary can help people properly plan for the future. Todd also enjoys cooking and traveling in his free time.
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.
