Understanding Withdrawal Guarantees

Withdrawal guarantees are a guaranteed way to plan for retirement income.  They can be paired with features such as lifetime income riders and are often features of variable annuity contracts.  For retirees wanting added security to their retirement income, guaranteed minimum income benefits (GMIB) and lifetime income riders provide peace of mind that retirement will …

Split Annuities

Better defined as an annuity strategy, a split annuity provides an immediate tax advantaged income to retirees by using two different types of annuities in an ingenious way. How It Works Taking a portion of retirement funds and placing them into an immediate annuity for 5 to 10 years, monthly income is generated from the …

Annuities vs. Certificates of Deposit

One of the most oversold and underperforming financial vehicles in America is the Certificate of Deposit or commonly called the CD.  The CD has become a popular investment tool for many American’s due to its slightly higher rates than many bank savings accounts.  In addition, many older Americans put their savings into CD’s because they …

Immediate Annuities

One vital strategy involving retirement planning income is including immediate annuities.  Often called an income or payout annuity, these retirement income streams are a mirror image of a life insurance policy.  As a life insurance policy pays a lump-sum amount upon death after regular monthly payments are given from the insured to the insurer, an …

Annuity Laddering Explained

With any retirement strategy, there are several variables needed to calculate the best retirement income for an individual.  Intangible concerns, such as peace-of-mind, also play a big role in retirement planning.  There is no magic formula to solve the retirement savings strategy dilemma.  However, the annuity laddering approach in retirement income planning is a strategy …

The Power of Indexed Annuities

For all investors, growing and protecting savings without the risk of market volatility or the risk of losing any of their savings sounds like a dream.  But, with fixed indexed annuities, this is exactly the case. An indexed annuity is a special type of annuity that yields returns on investments that are based on a …

Roth Annuity Purchase is a Lifetime Stream of Tax-Free Income

Annuities are investment contracts insurance companies sell that agree in exchange for an original investment by the purchaser, the insurance company will make periodic payments to the investor at a later time such as retirement.  One drawback to purchasing an annuity is the fact that taxes need to be paid when the money is withdrawn …

Longevity Annuities

One of the greatest fear for retirees is outliving their retirement income.  One common approach to managing this fear is to maintain a diversified portfolio, cut retirement spending, and make necessary adjustments to future plans.  However, for those who have worked hard and sacrificed their entire lives, retirement is the time to finally enjoy the …

Annuity “Buckets”

For those who invested heavily in the stock market for their retirement in the last decades of the 20th century had a rollercoaster ride their first decade of retirement due to a volatile stock market from 2000 to 2009.  In fact, many of these new retirees lost up to half of their retirement savings in …

Understanding the Four Types of Annuities

When planning for retirement, one option for continued income is annuities.  Many people shy away from annuity investments because they don’t fully understand how annuities work.  However, annuities can be a consistent source of income for many during retirement with little or no risk involved.  There are four different types of annuities that are available …