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Can An Annuity Help You Fund Your Retirement?

March 4, 2019

If you are thinking about retirement and have some concerns about whether you will have enough, you are not alone. Most of us do not have a traditional pension, which means we must do more to ensure we have enough income to live comfortably in our later years. Even if you put the max into your 401K and save wisely, there is no guarantee you will have enough as 401Ks, for example, are affected by fluctuations in the stock market. 

This is why some people invest in annuities in order to get a steady stream of income in their retirement years. Annuities differ from retirement saving plans because they offer guaranteed income based on whatever terms the issuing insurance company and the annuity owner agree to. The rate of the annuity will depend on a number of different factors, including the type of annuity, the length of the annuity, and when payments begin. 

As long as you choose to work with a reputable insurance company and have designed terms that fit your financial situation now and later on, an annuity might be what you need to fund your retirement. However, annuities do have some drawbacks. For one, once you do decide on terms and sign a contract with the issuing insurance company, you are bound by those terms. It is very difficult to draw from your annuity without paying significant penalties and taxes. 

That's why some people ultimately decide that they need to sell some or all of their annuity payments when an emergency or opportunity strikes. You might be asking yourself why should I sell my annuity? Selling your annuity payments for immediate cash is the best way to get money fast from your annuity and avoid burdensome fees. If you need to pay off high interest debt or your financial situation has changed, we encourage you to contact us today to speak with our customer service team and receive a free quote. 

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