Advertisement
retirement

Seeking Secure Retirement Income? An Annuity Could Be a Good Fit

If you're worried about outliving your savings (and who isn't?), a lifetime of guaranteed payments could ease your mind.

Locking down a solid retirement income plan in today’s volatile investment market can be challenging.

Some caveats to consider

When thinking about purchasing an annuity, you must take a few things into consideration. For one thing, you must realize that annuities are not FDIC insured. In addition, the quality, costs, coverage and terms of annuities vary by insurance company. So here are a few areas to focus on:

Advertisement - Article continues below
  • The ratings of the insurance carriers
  • Annual fees
  • Length and ammount of surrender charges
  • Death benefit
  • Choices of payout options

Final thoughts

When you’re thinking about using annuities for income, keep in mind how to best integrate them with your other resources. A great strategy is to determine how much money you’ll need in retirement, purchase one of these products to be sure you have enough, and leave the rest of your money invested to grow.

If the market cooperates, your net worth will continue to increase while you’re retired. And if it doesn’t, you’ll know your annuity, combined with Social Security, will continue to provide steady and reliable income.

Talk to a financial professional about whether this is a good time to buy the type of annuity you’re interested in, but don’t put it off for too long. I recommend buying within at least five years of your planned retirement age.

The guaranteed lifetime income for all parties to an annuity contract should give you the financial confidence that you will have adequate income to ensure a successful retirement.

Kim Franke-Folstad contributed to this article.

Advertisement

About the Author

Carl Zeidler, CFP, MSFS

Director of Financial Planning, Wall Street Financial Group, Inc.

Carl W. Zeidler is the founder of Wall Street Financial Group Inc. and the director of financial planning and investment services. He is an insurance professional and an Investment Adviser Representative through Wall Street Financial Group. Wall Street Financial Group is a Registered Investment Adviser in Illinois, Missouri and Tennessee.

Advertisement

Most Popular

Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020
Social Security Recipients, Veterans Must Act Now to Get Extra $500 Stimulus Check
Coronavirus and Your Money

Social Security Recipients, Veterans Must Act Now to Get Extra $500 Stimulus Check

The deadline for seniors and veterans to request an additional $500 stimulus check for a dependent child is approaching fast. See how you can claim yo…
September 25, 2020
11 Dividend-Paying Stocks You Should Think Twice About
dividend stocks

11 Dividend-Paying Stocks You Should Think Twice About

Dividend-paying stocks often can be a store of safety, but 2020 has been difficult on income equities. These 11 picks look like shaky plays despite th…
September 21, 2020

Recommended

The Best Vanguard Funds for 401(k) Retirement Savers
mutual funds

The Best Vanguard Funds for 401(k) Retirement Savers

Vanguard funds account for a third of the 100 most popular 401(k) retirement products. We rank Vanguard's best actively managed funds, including its t…
September 29, 2020
When Is Amazon Prime Day 2020?
spending

When Is Amazon Prime Day 2020?

Circumstances beyond its control have forced Amazon to move its annual Christmas-in-July Amazon Prime Day blowout sale in 2020 to ... later. Prime Da…
September 28, 2020
Should You Retire During a Pandemic? 3 Things You Should Know
retirement planning

Should You Retire During a Pandemic? 3 Things You Should Know

You may have no choice but to retire early, so make these three crucial assessments now to see where you stand.
September 28, 2020
Check Your Financial Adviser Now (and Every Year) or Regret It Later
wealth management

Check Your Financial Adviser Now (and Every Year) or Regret It Later

Fewer than 10% of investors use such free background checks as Investor.gov, BrokerCheck or IAPD to check their financial advisers’ backgrounds. These…
September 21, 2020