Don’t overlook the benefits that annuities provide during your retirement planning years. Yes, some myths make them appear to be a lousy choice, but there are reasons to trust in financial insight rather than the Google results on the Internet. Here are a few facts debunking annuity myths:
- Don’t wait until you retire. If you max out contributions to an employer-sponsored savings plan or your IRA, a deferred annuity can help build wealth. It offers a tax-efficient vehicle that turns into income later in life.
- You can access your money. The unexpected is what life is all about, and it’s important to access your money when you need it—without hassle. So, it’s good to know that most annuities allow for withdrawals up to a certain percentage each year without charging an early withdrawal fee.
- Age doesn’t play a factor. Guaranteed income for life is hard to argue, but for many, a pension or Social Security payment isn’t enough to maintain a retirement lifestyle. An annuity is one of the few options that offer a guarantee that won’t run out before you do.
- You can allocate a beneficiary. Built-in death benefit agreements are included or can be added to many annuities. With this rider, your designated beneficiary receives the remaining account value (or guaranteed minimum surrender value).
- Trust the consumer protection. Annuity claims are backed by the claims-paying ability of any issuing insurance company. Further, if that company fails, state guaranty systems will kick in to protect you, the consumer.
Annuities can be integral to a comprehensive retirement plan. Don’t miss opportunities because of misconceptions. We’re here to help break down and simplify topics like this. Reach out to our team and let us help you determine if an annuity is a suitable solution for your unique situation.