Hundreds and thousands of professionals without any proper financial planning find them in tight spots when it comes to building the portfolio for their post retirement life. If you do not want to repeat their mistake, seek assistance from a reputable financial planning services company. They can help you to choose an investment plan that would help you grow your funds in the limited span of time. A systematic investment in annuities, for example, has helped many people approaching their golden years to increase their wealth which proves, it is never too late to invest in annuities.
Annuity, can somebody define the term in easy words?
When you buy an annuity, you enter into a contract with the insurer with specific pay out given to the insurer at the beginning of the term. You can pay rest of the sum in easy installments. Investing in annuities generates a regular return for you. The money you invest start working on your behalf.
Are Annuities Lucrative?
When you invest in an annuity, it generates a steady income for you. You can start claiming the payout from the immediate effect, after a month of investing on the term, or, you can wait for an agreed upon time and reap the benefits later. Annuities are not ageist like some investment products available in the market. No matter whether you have been superannuated for a while, or have started your career, you can invest in an annuity. Most interestingly, if you are on the last leg of your career and want to boost the strength of your retirement portfolio, you might consider investing in an annuity.
Are Annuities Flexible?
The flexible options available through annuity make them a lucrative choice. The tax-deferred income in annuities provides growth in the investment portfolio but at the same time offers a safety valve for the principal capital. The right kind of investment in annuity ensures that a senior citizen can leave an amount of money for his children and grandchildren, even when they have lived a full life and have paid their expenses through their retirement funds.
It’s always best to consult reputed financial services expert when it comes to choosing the right annuities. But even then you should research your options to make an informed decision for your wealth management.
What Should Be Your Objectives?
Keep in mind your financial situation while buying annuities. An 80 years old person has to make choices different than an early retiree who is still leading an active lifestyle. The priorities from person to person changes, and so does their wealth management plans.
When you are in the early leg of retirement, you should:
- Cash out your social security benefits early, and invest further in a growth-guaranteed portfolio.
- Invest in equity indexed annuity, and reap the benefit of the both fixed and variable annuities.
- Invest in fixed annuities when you have a substantially large sum at your disposal.
- Do not take any unnecessary risk with variable annuities.
- Remember that an equity index annuity will keep your principal safe while giving you increased return with a calculated investment in stocks.
- Keep check on your ‘participation rate’ for maximized stock gain and minimized inflation
When you are eighty years old, keep in mind-
- Time is not on your side.
- Do not tie up your entire saving to any single annuity product.
You may want to leave behind a legacy fund, avoid life annuity which offers no legacy term.
- A simple ‘immediate life annuity,’ which lasts for the rest of your life, will help you out in meeting expenses when you are in the risk of outliving your legacy.
Remember, as a retired person, you will no longer enjoy the assurance of a steady pay check. So, you must keep your nest eggs safe, and for that you should seek help from reputed financial planning services providers. Rising cost-of-living has left many senior citizens in a vulnerable position. By making the right investment choice like annuities, you can avoid their fate.