Concerned about outliving your savings?
Are you approaching retirement or already retired? Worried about outlasting your money? An income annuity might be the solution for you. An annuity is a financial product that offers a guaranteed lifetime income that will never run out.
Understanding Annuity Options
I have extensive experience assisting clients with annuities as part of their overall financial strategy. Let’s delve into some key options for fixed income annuities:
- Joint life: Provides income for two individuals, continuing as long as one person is alive. Payments then shift to the surviving partner.
- Period certain only: Allows you to specify the duration of income payments. If you pass away before completion, your chosen beneficiary will receive the remaining payments.
- Life with a period certain: Offers lifetime income, with remaining payments going to your beneficiary if you die before the chosen period ends.
- Life only: Provides the highest payouts but stops payments upon your death.
A Real-Life Example
I witnessed the benefits of an annuity firsthand when my late mother-in-law utilized a joint life immediate annuity, funded by the sale of her home. Now, my wife receives a steady income for the rest of her life from this same annuity.
Considering Annuities in Your Financial Plan
A guaranteed lifetime income can bring peace of mind. Consult your financial advisor to determine if an annuity aligns with your financial goals and needs.
