Annuities Provide More Secure Options for Retirement
IRAs and 401Ks may be the best ways to plan for retirement, but they have their limits, mainly in how much you can contribute to them. If you’ve grown accustomed to a certain standard of living, the last thing you want to worry about in retirement years is your budget.
If you invest in an annuity, retirement savings don’t have to be limited. Long after you’ve maxed out your contributions to IRAs and 401Ks, you can still purchase annuities, guaranteeing a steady flow of cash that you can depend on.
For good reason, one of the greatest fears many face in retirement is outliving their savings. Living too long shouldn’t have to be something you have to worry about, but if your savings run out, if your 401K or IRA gets depleted, where will you turn? With annuity, retirement payments never run out, so you will have a continual inflow of cash, no matter how long you live.
The security of annuities could explain why nearly 10 million people facing retirement today are purchasing annuities.
Of course, you could plan better than you think and end up so well off financially that you don’t need the annuity. You may want the money in a lump sum in order to buy a vacation home, or you may need it for a financial emergency. Traditionally, you’d have been stuck with that annuity. Sell that annuity, and you would have faced serious taxes or fees that is just wasn’t worth it.
Yet now a secondary market for annuities now exists that’s steadily growing. If you no longer want the annuity, sell it and still get a good part of the value. It’s a trend that is growing. New annuity sales now top $200 billion a year. Annuities are commonly sold as asset-backed securities to big institutional investors.
You may want the money for other investments or you may need a quick stream of cash due to a financial emergency. Either way, you are never stuck with your annuity, as a market with considerable demand exists where it’s as good as cash.
An annuity is a solid nest egg to depend on. It provides a lasting financial security, as well as a guarantee you won’t outlive your savings. Plus, it’s a valuable commodity, easily traded in for cash if you need it. Annuities are safe ways to hedge your best against the financial pitfalls of retirement, guaranteeing you can continue to enjoy your life with the income you’ve become accustomed to.
