Certain annuities, for instance, may be used to save for retirement over the long term and convert those assets into a steady source of income once retirement arrives. Certain annuities are tailored to meet the present or future needs of retirees who cannot wait for traditional retirement accounts to mature. Overall, the variety of annuities available allows for adaptability to various requirements and conditions.
In many cases, annuities may be useful, depending on the kind you choose:
Achieve Desired Retirement Income
When you finally retire, can you count on a reliable income?
Several streams of retirement income may help you maintain your commercial insurance once you retire. Social Security is an example of a secure and predictable source of income. But, market-linked securities in retirement accounts and investment portfolios may not be.
Annuities may strengthen the security of a retirement income plan by providing a steady income stream for life. Income annuities allow the beginning of the income stream to occur immediately or at a future date of your choosing.
Don't let your wealth die with you.
For those who face the problem of stretching their retirement funds over what may be many more years than they had anticipated, annuities can be a lifesaver by providing a steady source of income for the rest of their lives.
A certain kind of annuity may also assist retirees in dealing with the dissonance between retirement account withdrawal requirements and the increased life expectancy of modern Americans.
It's important to spread out investment risk.
Whether purchased individually or as part of a diversified fund, stocks and bonds form the backbone of most retirement and investing portfolios. This means that their performance and, by extension, their growth from one year to the next are susceptible to market fluctuations. That's a problem, particularly for those planning to retire during a down market.
Market cycles may affect stocks, bonds, commodities, and real estate.
Modify your budgets to fit your needs.
Many annuities exist, each with characteristics and workings designed to achieve a certain goal. Certain annuities prioritize accumulation, diversity, and tax-deferred growth for retirees planning for the future. Other plans aim to provide retirees with a steady stream of cash in the short term.
Depending on the specifics, investors may be able to better tailor their portfolios to achieve their aims.
