As retirement approaches, the burden of ensuring you have a secure and sustainable income for the rest of your life becomes intense. While it’s true that Social Security and pensions can help, they aren’t always enough to live comfortably. Studies show that if you spend only 4% of your wealth each year, you will exhaust your resources in 20-30 years. For example, if you have saved $100,000 by the time of retirement and you plan to spend $4,000 annually, you will run out of money in about 30 years. With a $100,000 principal, you’d be paying less than $350 a month. With an income annuity, you can supplement your pension and social security benefits by exchanging a lump sum for the guarantee of a lifetime income that won’t fluctuate no matter how long you live. Your principal balance in a fixed annuity is protected by the guarantee of the issuing insurance company. Upon your passing, there will be no change to the original principal amount, and any additional funds may be distributed to whomever you designate as a beneficiary. Income annuities are a safe way to ensure a steady retirement income, no matter what happens to the stock market or your other investments. After you determine the amount of income you require during retirement based on the value of your initial investment, the pension annuity will begin to pay you that amount regularly. Retirement income annuities are a risk-free option for those looking to prepare for old age. The profit potential of conventional investments is higher, but they also carry a higher level of risk. However, they cannot assure you that they are safe or that you won’t ever lose your principal. When establishing a lifetime income annuity, you can choose different options. The monthly amount you receive and the amount you leave to your heirs are just two examples of how these choices can have far-reaching consequences. Some of them are:
- Fixed-indexed annuities with guaranteed income riders: Fixed indexed reduce the financial impact of the market’s ups and downs. You will get a certain amount of money in the future, no matter what happens on the market. This sum is guaranteed never to decrease, but it may increase with time if the fixed indexed annuity grows in value.
- Life Annuities: These annuities offer the highest payouts, but investors give up their principal to the issuing company when they die, leaving nothing to their heirs. Other investments can be made simultaneously with the money saved from setting up an immediate annuity.
- Life Annuities with Refund Certain: This annuity guarantees you a fixed stream of income for life. If the annuity holder passes away before the term ends, the remaining value will be paid to the beneficiary.
- Fixed Annuities: These annuities aren’t typically considered income-producing investments, but you can enjoy both compound growth and a decent stream of income because you can withdraw money as you need it. However, the interest rate is much higher than what you’d get from a typical money market account or CD (CDs). You can withdraw money when you need to by including a free withdrawal clause in your contract.
Fixed annuities provide the greatest degree of independence in managing your invested capital. You can transfer the principal to another investment or return it to the original one at the end of the term. Notably, the annuity account balance does not have to go through probate, so it can be paid out to beneficiaries without delay after the owner dies. With an income annuity, you can rest assured that you will have enough money to maintain your current standard of living in retirement, regardless of how long you live.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
