When You Should Invest in an Annuity: 5 Life Scenarios

June 05, 2019

As retirees look ahead to a retirement with uncertainties, they need to have an adequate, dependable, and long-lasting stream of income. With an unpredictable stock market, grim outlook on Social Security and pensions, and a continuous rise in healthcare costs, an annuity can provide the financial security that retirees need to enjoy their retirement years without the fear of outliving their assets.

Here are 5 life situations when buying an annuity makes a lot of sense:

  1. You want guaranteed income for life. One of the biggest fears of retirees or people nearing retirement is the concern about running out of money. With the right annuity suited to meet your needs, it can help you cover all of the necessary expenses for as long as you live.
  2. You want to avoid investing in the markets. No matter how poorly the markets are performing, your principal balance is protected from losses.
  3. You want to protect your retirement assets from taxes. One of the main tax advantages is that the money you invest in an annuity grows tax-deferred.
  4. You want control of your assets. With an annuity, you’ll have control over the accumulation phase as well as the distribution phase of the annuity. You can still choose how and where to invest your funds in the annuity and make changes as desired each year as rates are adjusted annually.1
  5. You want to leave a legacy. One of the many desires of retirees is being able to pass on a legacy to their loved ones. In the event that you pass away prematurely, your beneficiaries will inherit your assets.

Decades ago, Americans relied on guaranteed governmental benefits to fund their retirement. Today, very few enjoy this level of financial security. If any of the above applies to you, then an annuity could be your solution. Contact us today. Let us help you further understand the ins and outs of annuities and determine whether it’s suitable for your retirement strategy.

The content within this document is for informational and educational purposes only and does not constitute legal or tax advice. Customers should consult a legal or tax professional regarding their own situation. This document is not an offer to purchase, sell, replace, or exchange any product. Insurance products and any related guarantees are backed by the claims paying ability of an insurance company. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.

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[1] https://www.tiaa.org/public/pdf/How-to-make-changes-to-annuity-income.pdf