When you approach retirement you're ready to remove risk from your portfolio. But investments and retirement benefits would possibly not deliver enough earnings to support you forever. Probably the most considerations you'll be able to ask for in retirement is a regular and secure monthly income that you can count on. A fixed immediate annuity is just such a guaranteed source of reliable monthly income Check Out Immediate Annuity
If you have a pension you will need to decide what you will do with the funds as retirement nears. Usually, the company administering the pension will try to sell you an income stream from their own sources. They basically are seeking to sell you an income stream in exchange for your retirement pension assets. Based entirely on your age, you may give them$ 100, 000 in exchange for$7, 000 a year - this is similar to a fixed immediate annuity, however the products offered by your pension fund manager may not be your best option.
Don't think that you have to take this first offer- you are not required to buy the fixed immediate annuity the pension administrator offers. This is a common mistake that costs people thousands in retirement income. There are always other options to consider, so don't take the first thing that comes by! Check Out Immediate Annuities
Furthermore, not all annuities that you may be interested in at retirement are fixed immediate annuities, yet this may be your only option from your pension advisor. Other annuity options include variable annuities, that link performance to stock market holdings. You can also look at indexed annuities that link appreciation to stock indexes. There are kinds of annuities for many different retirement and pre- retirement income needs.
Another misconception is that many people believe that to realize any of the gains in the market and grow your money, you must be willing to risk losses and see the balance of your money decrease. This is only the case with certain types of variable annuities, and is not the case in fixed immediate annuities. An immediate fixed annuity will give guaranteed income, for life, and you give the risk of poor investment performance to the insurance company, protecting you- or another- forever. That person may be you, a spouse, or even a child. In that case, if the investor were to die, the payments would then be converted to their heirs. Done properly, a fixed immediate annuity will continue to pay for an entire lifetime.
Above all, a fixed immediate annuity is a guarantee. You can stop worrying about stock market fluctuations, knowing your money is secure. You can rely on steady income and can not outlive your assets.
The only downside is that it is a rigid agreement. You can't withdraw your funds once you purchase a fixed immediate annuity. You will not realize additional gains other than what the contract terms spell out. Even if your financial situation changes the terms of a fixed immediate annuity remain the same. But lifetime income may be worth it- a good advisor can help you understand the risks and rewards of a fixed immediate annuity. We can help out with Immediate Annuities
