Enjoy Security Through an Annuity in Retirement
It’s a fact that IRAs and employer sponsored plans are the best ways to plan for retirement, but they have their limits, mainly in the amount you can invest in them. You’ll likely want to enjoy a similar quality of life after you retire, and the last thing you want to worry about will be 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.
That’s probably why nearly 10 million people facing retirement today are purchasing annuities. It’s a reliable flow of income that you can depend on or just save as a nice safety cushion of savings for unexpected expenses you might face in your retirement.
Yet there’s always the possibility you’ll end up better off financially than you thought you would have been in retirement. Perhaps, you’ll have more than enough finances to live comfortably, and may prefer that annuity in a lump sum to invest in a vacation home or buy a boat. Just a few years ago, you’d have been stuck for life with the annuity. Sell that annuity was something you just couldn’t do, or you’d face paying steep taxes and not get nearly the value you invested.
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.
It’s possible you’ll prefer the money in a lump sum for other investments or an unforeseen financial emergency. You’re never stuck with the annuity. With the demand annuities enjoy in the market, they are as good as cash.
An annuity is a good nest egg to have. It provides the security your contentment and happiness depend on in retirement. It’s a guarantee that you’ll never outlive your savings. At the same time, it’s a salable asset, perfect for when you need a lump sum for either a dream home or a financial emergency. Investing in annuities is simply a safe way to hedge your retirement, adding up to solid security or a valued commodity that can be sold for cash when you need it.
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