How do you feel about your investment experience over the past year and a half? Chances are you suffered deep losses in 2008 and a decent recovery to this point in 2009. So now what’s your strategy? If you are facing retirement within the next ten years then conservative, calculated decisions are mandatory. That is probably why you should buy annuities.
Even with the recent market rally, most people are still have a long way to go in order to be able to achieve reasonable levels of retirement income. With the continued economic uncertainty it seems careless to risk any future losses. If you would like income guarantees based on your current account value while also being able to participate in the market, then it’s a good idea to buy annuities.
No matter how much money needs to be recovered, pre-retirees should always keep a good portion of assets in safe cash instruments.
The trouble with that strategy is it can be hard to find decent interest rates on CDs and money market funds. To find the safety of cash combined with an acceptable rate of return you might want to buy annuities.
Regardless of how your investments perform in the future, at some point you will be looking at maximizing retirement income. Options for retirement income vary drastically so research is required to find the highest level possible. Don’t worry; it’s probably easier than you think. The solution is simple: buy annuities.
If you are happy with the safety of cash, do yourself a favor and find the highest rates on the market. Also consider the accumulation advantage you’ll get from a tax deferred investment vehicle. Tax deferral allows more money to accumulate without the annoying side effect of an annual 1099 statement.
For safe cash and tax advantages the key is to buy annuities.
Annuities are great financial vehicles that vary considerably in product type and application. There is a solid chance that every individual will benefit from the use of some type of annuity during retirement. The facts speak for themselves: market participation with income guarantees, safe money with reasonable returns, tax advantages and maximum income strategies. This is only the beginning on the list of reasons to buy annuities.
Now, it can be hard to find unbiased information. Annuities are all about timing in regards to an individual situation. No one product is a perfect fit for every person. Sadly, the industry seems well represented by highly skilled salespeople who leave sound advice as a secondary goal. I, however, consider it my duty to advise first, in which case a product is bought, not sold.
Before you buy annuities for the advantages mentioned here, seek out quality advice and a little personal education. It might take a little work but the long list of benefits will be well worth it.
This is a basic lecture on simple ordinary annuities.
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