We've all seen them.......Those TV shows and commercials where the wealth manager of an investment firm touts how they hate annuities. But why?
It's simple..... Annuities are NOT for Investors. Annuities are for Savers.
Comparing annuities to stocks and mutual funds, is like comparing apples to oranges. They are just not the same.
After you have reached your accumulation goals, it's important to be prepared for the income phase of retirement. It's important to develop realistic expectations for income, expenses, and lifestyle goals in retirement.
Once we move into retirement, many of us mistakenly think that retirement is simply the reverse of accumulation and we pay ourselves a certain income from our savings until the money is gone. But how long will we live? How much savings is enough?
How will inflation and increasing taxes effect our retirement savings? What if we outlive our savings? What if we need long-term care?
A volatile market can send your net worth plummeting at a moment's notice. It's important to remember that creating income for retirement takes a whole new way of thinking and a whole new set of strategies to avoid running out of money.
That's where annuities come in....... Annuities offer you Guaranteed Lifetime Income.
Many annuities offer optional living benefits, for an additional fee, that provide income guarantees – including lifetime income.
Annuities Offer Tax-Deferred growth. Any growth in the annuity is tax-deferred until withdrawals begin.
Annuities also offer you Legacy Protection. Today many annuities typically include a standard death benefit, and often offer an optional enhanced death benefit for an additional fee.
People also like annuities because they feel annuities help make it easier to manage a budget in retirement, allow them to get income in retirement more efficiently than many other financial products, and can help plan for a more secure future.
Don't Go Broke In a Nursing Home
As we prepare for retirement, we must be mindful that people are living much longer today. In fact, 7 out of 10 of individuals 65 years old and above would need long term care. Will you?
The issues of aging and needing care is not just a problem of an individual. It’s impact is felt by the whole family.
To protect you and your family, learn about the latest cost of long term care in your area. Rates may vary depending on the state you live in.
According to The Association for Long Term Care Planning, the average annual cost for a Nursing Home - Private Room is $100,379.
It's important to have a Plan B, because Medicare does NOT pay for Long-Term Care costs. Medicare only pays for 100 days. After that, what's your Plan B? How will you pay for it and where will the money come from?
Annuities can provide Long-Term Care Riders to either pay for or offset the cost of Long Term Care.
That's something the Stock Market can never give you.
A written guarantee against loss, tax-deferred growth, legacy protection and long-term care benefits.
No wonder they hate annuities. However, being that we are living longer, our clients LOVE annuities.
Don't listen to the "haters". Gather key financial information, including your retirement income statements.
Before you retire, have a Plan B. Make an appointment with a financial professional and collaborate on ways to enhance Social Security. At JenniferLang FinancialServices.com we will design the best annuity strategy to address your retirement needs and give you peace of mind.
Contact us today. JenniferLang FinancialServices.com