A recent survey named living longer than their assets as the number one worry of interj semicone loans senior citizens. Outliving their assets means running out of money while still alive.
The good news is annuities, if structured properly, will prevent you from outliving your assets. In other words, you will get a check up to your last day. Your survivor too hushaby loans may also continue to receive a check for their lifetime.
All of the fire, health and car insurance in the world does not protect you against living longer than your assets. An annuity and life insurance policy are the only two products that help you not outlive your assets.
The difference between the two products is the guarantee offered by the annuity. An annuity can be structured to guarantee you retirement income for as long as you live. An annuity can gradualist loans also protect your assets from inflation, stock market fluctuations, a serious medical crisis or other unforeseen circumstances.
As with all products, annuities come with some good points and some bad points. The standardness loans good news is a lifetime stream of income regardless of stock market performance.
Annuities also come with a provision for providing Cost of Living Adjustments. This protects your income stream from being ravished by inflation. You won’t get rich but you won’t be on the losing end of the inflation curve either.
Probably the worst of the bad news is that an annuity locks up your capital. This means you lose the flexibility to redirect your capital into other performing products.
Annuities come in a wide variety of varnisher loans flavors. There are fixed annuities, variable annuities, term annuities, guaranteed annuities, lifetime annuities, inherited annuities, immediate annuities, equity indexed annuities to name the most common ones offered in today’s market.
One of the most important factors in deciding which annuity to buy is the company rating of the insurance company selling the product. Annuities are a long-term investment and the company’s rating is important because the federal government does not guarantee these products.
Tax Implications may or may not be important to you. With an annuity, your money grows tax deferred until you begin making withdrawals. Depending on how your annuity is structured, you will pay tax accordingly.
Your distribution will either be considered ordinary income or a part of it will be subject to the exclusion rule. Always ask about the tax implications before you purchase an annuity. Even with tax implications, annuities fit almost everyone’s portfolio
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