Can an Annuity Make You Happy?

According to a recent TIAA – CREF Institute study, those individuals that have some source of guaranteed income in retirement are 60% more likely to report higher retirement satisfaction. Both immediate and longevity annuities can provide a guaranteed income stream in retirement in exchange for a lump sum payment, yet the two work in different ways. As you may know, there is no “one size fits all” model for retirement planning, which is why meeting with a trusted financial professional is one of the best ways to assess how different vehicles best fit into your personal retirement portfolio.

While annuities are not for everyone, they are one method that you can use to ensure guaranteed income in retirement. Annuities have received a lot of heat in the news, but not all annuities are bad especially if your advisor is legally bound to offer only what is in your best interest (a fiduciary). Both immediate and longevity annuities can be a great source of guaranteed income, and they are typically less prone to sales abuse and conflicts of interest among advisors.

An immediate annuity allows you to turn a lump sum of cash into a monthly payment that starts immediately and will continue for life. On the other hand, a longevity annuity takes a premium up front but delays payments for 10-20 years.  Longevity annuities allow you to give less money upfront than an immediate annuity, but must wait to receive it and run a risk of never receiving the payments if you die too soon.

Click HERE to request your no cost, no obligation financial review where we’ll help to evaluate and assess the standing of your current financial status. We will work together to devise a strategy that best fits your unique situation, and helps to achieve your personal goals for retirement. We can help you leverage your strengths, and fill in holes where necessary by taking a fully personalized and comprehensive approach that best suits your current lifestyle and the lifestyle you desire in the future.