When your goal is to provide a steady stream of income during retirement, annuities may offer a steadier ride than the Wall Street roller coaster.
Fixed annuities are contracts with insurance companies that can be funded with either a lump sum deposit or through regular payments. They guarantee* a rate of interest and a level payment back to the owner or the beneficiary for a fixed period of time or until death. Fixed annuities are very appealing to investors wary of a roller coaster stock market, and the interest credited is not taxed until you decide to take the money out.
If you’re worried about running out of money, a fixed annuity may help you sleep at night. They can guarantee* that your money will always provide an income through retirement and at least cover a set amount of expenses.
Discussing the details of your situation and brainstorming ideas to provide security for you and your family may offer the peace of mind you are looking for. Getting the information early is always advantageous to receiving it when it may be too late.
*Guarantees are dependent upon the claims-paying ability of the company.
Source: Ryan Howison, John Hancock Financial Network
Email Newsletter 11/24/15