The number one reason that people purchase an annuity in the first place is income protection, protection from living too long. Think of it as an insurance to protect you from outliving your assets. It is not uncommon, and it is becoming more common, for people to outlive their retirement funds, people are living longer. For many people, it just makes solid sense. With the purchase of an annuity come contractual benefits known as settlement options.
Stop! Drop what you're doing and check your beneficiaries! If you have a testamentary trust, it might be a smart move not to name the trust as a beneficiary of certain assets such as annuities, life insurance, bank accounts, a brokerage account or a qualified retirement account. Please check your policies and if you [...]
When you open a retirement savings account (such as an IRA), you have the option of naming a beneficiary. This beneficiary designee stipulates where these assets will go when you pass away. A beneficiary form commonly takes precedence over a will, because retirement accounts do not fall under probate.
What happens if you live longer than you expect? How do you make sure your funds last as long as you do? Do you invest in stocks? Bonds? Keep your money in the bank? Increased life expectancy is extending the time needed for our retirement funding, making sure our money lasts as long as we do has become the new “mantra” of the Baby Boomers.