Including Annuities in Your Retirement Plan
Many people today are considering the option of going in for retirement. While this is not a bad option as such, you need to think about what you plan to do once you have retired. There needs to be a steady source of income for you to rely upon so that you don’t end up in trouble due to a miscalculation of some kind. In order to avoid this, many people make it a point to go in for something known as annuities. With these, people tend to have guaranteed income even years after they have retired. There are three broad categories in this – Equity indexed annuity Variable annuities and deferred annuities.
This is one of the most sought after kind of annuity today. It is popular for a number of reasons, and depending on how your portfolio might be; you too might be enthusiastic to go in for this option. In this, you will be able to get a higher return rate when the stock market is doing well. However, the rate will not fall beyond a certain minimum amount even in case of a stock market crash. Hence, this makes for a truly safe option when it comes to annuities, and essentially something that minimizes risk in the concept significantly.
For high net worth individuals, it is important to ensure that their money is not in jeopardy in any way. Hence, the only solution to make use of would be to go in variable annuities. In this way, even lawsuits cannot cause much harm with your annuity. Additionally, you can’t withdraw any money for a set period. Hence, unless you are not planning to touch your money until you have retired, this is not the kind of annuity that you would want to go in for. It is designed for people that have a high income and hence, to ensure that they can lead a comfortable life even after they have retired.
If you are in no rush for money at the moment and want to avoid taking risks at any cost, then this is the kind of annuity for you. Not only do you get a guarantee that your money is going to be in safe hands, but you can also be assured that you will have income regardless of the status of the stock market. Hence, this makes for one of the safest investments around and something that is guaranteed to give you a decent income much after you have completed your job.
Hence, it is important to ensure that you don’t simply go out there and get something that is not suitable for your profile. Ensure that you read about all these things or at least talk to a knowledgeable person about it so that your money doesn’t get invested in something unimportant. A finance professional can clearly tell you about what all you need and how you might be able to get an assured income through annuities without any problem as such.
