Annuities
If you’d like to learn more about using an annuity for retirement, reach out to us.
Annuity For Retirement
An annuity is a financial product that provides a series of payments at regular intervals (typically monthly, quarterly, or annually) either for a specific period or for the lifetime of the annuitant. It is often used as a financial vehicle for retirement because it can provide a steady and predictable guaranteed* income stream. Additionally, some annuities offer protection from market downturns, ensuring that you won’t lose money due to negative market performance. This feature can be appealing to retirees seeking more stability in their income.
Annuity Misconceptions
You may have heard some agents say an annuity for retirement is a bad choice. Why is this? Well, first of all, not all annuity products are the same. It depends on what type you have. For example, some annuities put your money at risk in the stock market, which you may not have the risk tolerance for. However, certain annuity products (such as fixed indexed annuities, or FIAs) allow you to gain a reasonable rate of return** while also keeping your money protected.
Additionally, some financial professionals just don’t have your best interest in mind. At Grady Group, we believe in guiding clients toward guaranteed* safe retirement options. We want you to be able to retire with confidence and peace of mind. For this reason, FIAs and other safe money options are what we focus on.
Then Vs. Now
In the past, there weren’t as many options when it came to an annuity for retirement. There were some annuity products that provided protection of principal, and others that came with a reasonable rate of return.** You could only have one of these benefits, and as a result, neither option was great. A reasonable rate of return** may not be worth it if your money is at risk, and safety may not be enough if you’re not also earning a reasonable rate of return**. Thankfully, there are now more options available to you than there were in the previous decades.
There are annuity products that come with the benefits of both safety of principal* and a reasonable rate of return.** You can also select from additional benefits: An annuity may offer a way to provide for your loved ones after you are gone. There are certain tax benefits that an annuity has compared to traditional retirement accounts. And, there could be more benefits built into your contract depending on the specific one. Reach out to us if you want to discuss specifics. Could an annuity for retirement be right for you? We can help you find out.
