For regular non-financially literate people, understanding the process of investing for retirement can be a bit confusing. Many people enjoy the idea of devoting a segment of their saved income to an annuity. They enjoy this idea because of the guarantee that the annuity will allow them to have a stable income. Yet, getting started in choosing the correct annuity can seem like a daunting task those who are not financially savvy.
Choose an Annuity
Those who are starting their financial journey into saving for retirement can follow an easy rule; the simpler the better. When starting out with saving for retirement, view it as a step by step process of understanding what you are doing and growing into the comfortability of investing. When starting, do not feel as though you need the most complex investment available. Start your financial process by thinking simple for starters.
When you pay for an annuity, you are paying a lump sum upfront to an insurance company with the guarantee that they will pay you a steady monthly income for the rest of your life. There are different factors that play into annuities which range from the amount you invest to the level of interest rates.
Deferring income possibly 10 to 20 years after you invest allows you to live comfortably throughout your retirement. For example, an older gentlemen in their 60’s that invests $50,000 in a longevity annuity today will begin making payments 20 years from now would actually be receiving about $2,0000 a month for the rest of his life at age 85.
To get an idea of what your longevity annuity may look like, utilize an annuity payment calculator.
This is a great tool to give you an idea of what an investment as an annuity will look like throughout your retirement.
Is an annuity a good and safe way for you to safely increase your income during retirement? The answer is yes. Yet, it is suggested to do extensive research on what you want your future to look like and what type of investment works best for you. Do not invest in something that does not make sense to you. A financial advisor is another great tool to utilize to help translate investment jargon.
For a smooth retirement, you must invest in your future. Never wait to start saving and investing in your own life. Annuities are a great solution to a relaxing and stress-free retirement.
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THE INFORMATION ON THIS WEBSITE IS NOT AN OFFER TO SELL OR SOLICITATION OF ANY KIND OF INSURANCE (FIXED PRODUCTS). PRODUCTS AND SERVICES REFERENCED ARE OFFERED AND SOLD ONLY BY APPROPRIATE APPOINTED AND LICENSED AGENTS. THE MATERIAL HAS BEEN PREPARED FOR INFORMATIONAL AND EDUCATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO PROVIDE, AND SHOULD NOT BE RELIED UPON FOR ACCOUNTING, LEGAL, TAX OR INVESTMENT ADVICE. PLEASE CONSULT A PROFESSIONAL WITH AN EXPERTISE IN THESE AREAS REGARDING THE APPLICABILITY OF THE INFORMATION PERTAINING TO YOUR SITUATION. BY RESPONDING TO ANY INFORMATION YOU MIGHT FIND INTERESTING, YOU AGREE TO BE CONTACTED BY A LICENSED INSURANCE AGENT REGARDING RETIREMENT INCOME PLANNING AND/OR LIFE INSURANCE PLANNING. PERCENTAGES REFER TO EITHER FIXED OR INDEXED ANNUITY CREDITING RATES OR LIFE TIME INCOME WITHDRAWAL AMOUNT BASED UPON YOUR INITIAL PREMIUM AND MAY ALLOW THE OWNER OF AN ANNUITY TO WITHDRAW UP TO A CERTAIN PERCENTAGE OF THEIR INITIAL PREMIUM PER YEAR FOR THEIR LIFE TIME. THIS WITHDRAWAL RATE MAY NOT BE AVAILABLE FOR ALL APPLICANTS AND CAN VARY BASED UPON YOUR AGE, STATE, THE START DATE OF YOUR LIFETIME INCOME, AND OTHER FACTORS. PERCENTAGES CAN ALSO REFER TO POTENTIAL CREDITING RATES FOR AN INDEXED LIFE INSURANCE POLICY. NOT ALL PRODUCTS AND SERVICES ARE AVAILABLE IN ALL STATES. CARMEL VALLEY INSURANCE, INC. IS LICENSED IN THE FOLLOWING STATE: CA. CALIFORNIA LICENSE # 0G89325. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. NOT INSURED BY ANY STATE OR FEDERAL AGENCY.
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