If you’ve been keeping up with our Annuity Genius blogs, you’re likely on the cusp of retirement and you’re looking to make sure that you don’t outlive your retirement savings. This is a real fear among Americans today and we understand. That’s why we do all the research and homework for you so that we can sit down and help you pick the right option for you when it comes to annuities. You may be wondering which annuity is right for you – whether it’s the fixed annuities, variable annuities, or something else, we’ll help you figure it out.
Immediate Annuities: We suggest an immediate annuity if you’re looking for insurance-backed, guaranteed income to last as long as you live. Why? Immediate annuities are popular with retirees, who need their savings to survive as long as they do. This is accomplished with a feature unique to annuities – the lifetime income option. In exchange for a single, lump-sum payment, the insurance company guarantees a steady monthly payout for the remainder of one’s life.
Fixed Annuities: We suggest these if you’re looking for a guaranteed rate of return with safety of principle. Why? With fixed annuities, the insurance company guarantees the rate of return at the time of purchase. The annuity will continue growing at that rate for as long as you or your heirs own it. Returns may be modest, but it is protected from stock or bond market volatility.
Variable Annuities: We suggest these if you’re looking for a higher risk asset with growth potential tied to the performance of underlying mutual funds. Why? Variable annuities (V.A.s) come with more risk because their performance is tied to that of underlying mutual funds. They are better suited for pre-retirement investors looking for growth and who have a healthy risk-tolerance.