The question is not if annuities are good or bad. The question is, Can a Fixed Annuity help your retirement goals? All tools exist for a purpose. Don`t use pliers when you need a drill. We will discuss the purpose of annuities, specifically fixed and fixed indexes annuities and why annuities may be the right tool for your retirement.
Question #1- How much money should I risk?
Many good advisors will tell you to follow this rule of thumb, deduct your current age from 100 and the sum is the percentage that you can afford to risk in the market. Your retirement money serves the purpose of survival and enjoyment. So why should you risk this money? To better illustrate this, let’s first define risk. Risk involves loss. In the market, loss can occur when investing through an advisor, broker, or on your own. The market experiences gains and losses all the time. Once you retire and begin losing money, “on paper,” you are losing real money. Always remember you are in charge of your money. Take the time to explore all your options and choose the route that feels right for you. Fixed and fixed indexed annuities can provide safety and growth. Over a period of time, a fixed annuity provides a series of fixed payments to the customer. Retirees can use this as an income supplement, and they can feel safer knowing that they have a steady income.
Question #2- Should the guaranteed safety of my money be a major concern?
How much of my money am I comfortable losing? Warren Buffet has 2 rules for managing money. Rule #1: Protect your principal. Rule #2: If in doubt, see rule #1. Mark Twain said, “I am more concerned about the return OF my money, than on the return ON my money”. Most people assume their accounts or funds are safe but no one cares about your money more than you. Never assume your money’s safety unless you have a written contract with guarantees. You need to position your retirement with the right financial tools to accomplish your retirement goals and wishes and providing you the peace of mind to really enjoy your retirement years.
Question #3 – How much thought should I give to a guaranteed lifetime income?
Many retirees are concerned about out living there retirement monies. A guaranteed lifetime income can help alleviate their concerns or fear. The only financial tool that can provide a guaranteed lifetime income is an annuity. As a feature of the fixed indexed annuity, a guaranteed lifetime income can cover expenses of the annuity holder. It can also cover the spouse over the course of their lifetime. Fixed or fixed indexed annuities are tools that provide protection for your lifetime income. Use these tools to help you build a comfortable retirement.
To schedule your free consultation, contact Mike Gann.