Planning to retire someday? Worried about how you’ll support yourself? How does guaranteed income for a period of time — such as 20 years or perhaps the rest of your life — sound? Deploy some of your retirement savings into an annuity or two, and you can create a reliable income stream in retirement.
An annuity is essentially a contract between you and an insurance company. You make one or more payments to the company and in return you receive payments — starting now or later. The payments can last for a fixed number of years or for the rest of your life. Pay a little extra (or accept smaller checks) and you can have the payouts last through the life of a spouse who survives you and/or be adjusted to keep up with inflation over the years.
Some annuity buyers end up dying before they collect what they spent on their annuity, while others live long enough to collect much more than they paid.
Annuities may not be for everyone, but they can serve many retirees very well. Spend some time thinking about what income you expect in retirement and how you want to structure it. You might draw dollars from a handful of sources, such as Social Security, your savings, dividends, and/or an annuity or two.
Please let me know if you have any questions. I’m here to help! To your incredible FINANCIAL success! “RETIRE BEFORE YOU EXPIRE”
– SHATEKA Husser