Replacing your monthly paycheck with a secure income stream for life can be a challenging task for prospective retirees. This has become especially true in the baby boomer generation, and those following, because pensions no longer provide the financial security most Americans are seeking. Moreover, the average monthly allocation for social security replaces just 40 percent of the average pre-retirement income. To retire comfortably while easing your mind from financial worry, it’s prudent to have a solidifying plan which is not reliant upon the aforementioned programs.
Annuities and the Absolute Protection They Provide For YOU and Your Heirs
How Can Annuities Protect You
Tax Advantages of Annuities
Annuities enable you to plan for your retirement and defer paying taxes until withdrawals begin. All the money you invest in an annuity compounds annually without you receiving a tax bill from the IRS. The ability to invest every extra dollar gives you an enormous advantage over other potentially taxable investments.
Steady Stream of Secure Income
Once you’re ready to receive payments on your annuity investment, you have the choice to take a lump sum. However, most retirees opt to arrange guaranteed, monthly payments for a set number of years or for the rest of your life. The latter option may be preferable for those who wish to have a steady stream of guaranteed income which may compliment social security and pension plans.
Death Benefit
Many Annuities act as a hybrid of insurance and investments. When consulting with “My Retirement Edge LLC,” you may choose to invest in a fixed indexed annuity, which can increase death benefit for a loved one. In general, the benefit will be equal to all premiums paid into the contract, plus any interest earned, less policy withdrawals. DB’s paid from an annuity bypass the probate process and are distributed directly to your heirs.
Low Surrender Charges
Most annuities will allow you to annually withdraw for up to 5 or 10 percent of your principle amount without incurring any fee or penalty after year one. Should you choose to withdraw more than this, there may be a declining fee for the first 7 to 10 years; after which, surrender fees may cease. Any withdraw prior to the age of 59 ½ may be subject to a early withdraw penalty by the IRS. These withdrawals will also impact the value of your benefits and total future payout.
Securing Your Future - Now
An annuity can provide future security during your retirement, and give you the guaranteed lifetime income you deserve. They allow you to save and grow large amounts of sizeable life payments, in a relatively short amount of time, which could be useful for people who are close to retirement and need to do some catching up.
*Let “My Retirement Edge LLC,” Guide You Through the Complexities of Annuities.
Annuities are one of many tools which can help you to secure your retirement. although, they can be complex and carry specific by-laws which may be counter-intuitive to your own needs. Our retirement consultant can walk you through the various features and assist you in choosing an annuity which can be customized to match your particular goals and objectives.
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