As you start planning for retirement and preparing yourself financially, you are going to come across several different financial investment options. Annuities are a great financial investment option for those who are planning for retirement. However, if you keep up with our blogs, you are probably aware that choosing the right annuity can be a tricky process. You want to select an annuity that will produce favorable investment results, but a lot of times that is a lot easier said than done. It is very easy to make a costly mistake when it comes to financial investments. There are certain mistakes that you want to avoid making, especially when it comes to annuities.
Investing Too Much
While annuities are a great source of reliable income, they can also be very inflexible. As we mentioned before, they are legal contracts that include stipulations, as well as regulations. If you invest one large, lump sum of money into an annuity, you lose complete control of that money and you cannot get those funds back. You are also restricted on how much money you can withdraw at a time. If you withdraw too much money, it can negatively affect your income returns. It is important to invest the right amount of money into an annuity.
Choosing the Wrong Type of Payout
We have already briefly discussed this type of mistake and how it can negatively affect you and your family. For example, we evaluated what would happen if you were to select a payout that stops paying after you pass away. This would leave your spouse and family without a steady stream of income they can rely on. It is important to ensure that you and your family will get the full income benefit of your investment.
If you have an older annuity policy, chances are the annuities offered today will have higher fees and smaller income guarantees. If you have an older policy, it is generally best to stick with that policy instead of switching over to a newer one. You may also have to pay surrender charges if you switch out annuities.
Whether you have questions regarding immediate annuities or any other types of annuities and how they can help with your Orlando retirement, please do not hesitate to contact our team of specialists at Annuity Genius. We will help you avoid the mistakes and make the financial investment that is best for you.