retirement

Retirees, Ladder Annuities to Hedge Your Bets

Staggering annuity purchases over time can boost your guaranteed retirement income and lower risks.

Handing over a large lump sum to an insurance company in exchange for a stream of guaranteed payments is a hard pill to swallow for many investors. Add in uncertainty about interest rates, which affect annuity payouts, and the decision to buy an immediate annuity becomes more challenging.

After three years, the first annuity will come up for renewal. You can withdraw the money, recommit those funds for another three years or extend the ladder by choosing a longer maturity. You have the same options, he says, each time another annuity in the ladder comes to the end of its initial guarantee period.

Most Popular

Tax Wrinkles for Work-at-Home Employees During COVID-19
taxes

Tax Wrinkles for Work-at-Home Employees During COVID-19

Are your home office expenses deductible? How does going out of state to work for a while affect your tax picture? There are some interesting wrinkles…
November 9, 2020
Retirement: It All Starts with a Budget
personal finance

Retirement: It All Starts with a Budget

When you’re meeting with your financial planner, do you talk about your budget? If not, you should.
November 10, 2020
Will Joe Biden Raise YOUR Taxes?
taxes

Will Joe Biden Raise YOUR Taxes?

During the campaign, Joe Biden promised that he would raise taxes for some people. Will you be one of them?
November 10, 2020

Recommended

Turned off by Low CD Rates? Consider a Fixed Annuity
annuities

Turned off by Low CD Rates? Consider a Fixed Annuity

CD rates are under 1%, but comparable annuities can pay more than 2% to 3% guaranteed and tax-deferred.
November 27, 2020
How to Help Your Family Wealth Last for Generations
estate planning

How to Help Your Family Wealth Last for Generations

Creating generational wealth takes careful planning and thoughtful sharing of intentions, plus the right investment vehicle.
November 24, 2020
Joint Trusts or Separate Trusts: Advice for Married Couples
estate planning

Joint Trusts or Separate Trusts: Advice for Married Couples

Unless you have a specific need for separate trusts, it’s usually best to avoid the headaches they cause and go with a joint trust instead. Here’s why…
November 20, 2020
Should I Start Gifting Money (or Even My House) to My Kids?
estate planning

Should I Start Gifting Money (or Even My House) to My Kids?

As for giving away your money while you’re still alive to see it go to the ones you love, there are pros and cons to think about. But when it comes to…
November 11, 2020