3 Times an Annuity Could Be a Good Planning Decision

If you’re nearing or in retirement, chances are you’ve heard about annuities and possibly considered investing in one. After all, annuities can provide you with income for life, which provides much-needed peace of mind in retirement. But when does buying an annuity make the most sense, at least for you? Here are three times.

You don’t want to worry about outliving your nest egg. A major worry for many retirees is running out of income when it’s too late to get a job. A fixed annuity protects against that possibility by offering a guaranteed level of income for life. So, if your number one priority is predictable, guaranteed income, a fixed annuity could make sense.

You want a low-risk investment. All investments come with some downsides. With fixed annuities, one downside is relatively low payouts in today’s low-interest-rate environment. But fixed annuities may make up for the downside by offering guaranteed income for life. For a price, you can even include a number of riders, such as cost-of-living adjustments (which protect against inflation risk) and options that cover long-term care expenses, should you require it.

Minimal maintenance is important to you. When you invest in a portfolio of stocks and bonds, some maintenance is necessary (by you or your financial advisor), including review and rebalancing, often annually. With an annuity, on the other hand, you essentially set it and forget it.

We can provide the input you need to help you decide if an annuity is right for you. Please call or email us today.