Want a Guaranteed Income for Life?

Most people look forward to the “Golden Years” of retirement. It’s a time to relax, travel and enjoy life without the stresses of work. However, it’s also a time when you need to be careful with your finances. After all, you’ll no longer have a regular paycheck coming in.

In today’s world, there is a rising emphasis on financial planning for retirement. For many people, this means saving as much money as possible and investing in various accounts. However, one question retirees face is how to ensure that this money will last throughout retirement. One solution is to purchase a guaranteed lifetime income annuity which can be a rider added to a fixed-income annuity. This ensures that regardless of how long you live, you will have a guaranteed income.

An income rider may ensure that you will have a stipulated amount of income every month, like clockwork, for the rest of your life, regardless of how long you live. Even if markets decrease your income will never stop or decrease. The benefit is insured by the financial strength of the insurance company.

Knowing that you will not outlive your retirement savings can provide peace of mind, reduce stress, and add to the quality of life. In addition, a guaranteed lifetime income may help to hedge against inflation, as the payments on some products may be adjusted for inflation annually. A guaranteed product may be a valuable addition to any retirement plan.

A fixed annuity has several features that make it an attractive option for creating guaranteed lifetime income:

1. It may offer a guaranteed rate of return on your investment. You will know exactly how much income you will receive from your annuity each year, regardless of what happens in the financial markets.
2. A fixed annuity allows you to defer taxes on your investment earnings until you begin receiving payments from the annuity. For many, this may provide a significant tax advantage.
3. A fixed annuity can provide stability in retirement with a guaranteed income stream.

As with all things, there are risks associated with fixed annuities, but the potential rewards make them worth considering for many investors. One of the most significant risks is that the insurer will not be able to make good on their promise to pay the annuity, but this is mitigated by only investing with reputable companies. Another risk is interest rate risk, which occurs when interest rates fall, and the market value of the annuity decreases. However, this risk can be minimized by investing in an annuity with a Guaranteed Lifetime Withdrawal Benefit rider. Finally, there is longevity risk, which is the risk that you will outlive your income stream. This is a genuine concern, but it can be addressed by choosing a more extended payout period or by purchasing a life insurance policy to cover the remaining balance of the annuity. While there are several risks, fixed annuities can still attract many investors.

Call a trusted retirement planner today, many people have been able to successfully plan for their retirement with these guaranteed products.