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Common Misconceptions About Annuities
At Income For Life, LLC., we often hear retirees and near-retirees express their concerns about annuity products. When we dive in a bit deeper, it is typically determined rather quickly that the information they believe to be true is actually false — and they never knew it. Sad, but true.
In this blog post, we’ll go over a few myths about annuity products. If you’re looking for the best annuity rates in Atlanta (or several other cities across the nation), our financial advisors can help. Call us today.
Here are a few misconceptions about annuity products that can put to rest some of your concerns and what the facts actually are:
MYTH: Annuities are investments.
Wrong! Fixed annuities are insurance products which have the ability to guarantee an income stream throughout retirement; they are not investments.
MYTH: You can outlive fixed income annuity payments.
Wrong! Fixed annuities are the best way to solve for longevity risk and be guaranteed an income stream for life.
MYTH: Fixed annuities are not a safe asset class.
Wrong! Insurance companies are regulated by state regulations. Insurance companies must have sufficient assets to make good on their guarantees. There is no loss of principal even when markets decline or the economy falters.
MYTH: Fixed annuities cannot provide lasting income to a surviving spouse or other beneficiaries.
Wrong! A spouse, survivor, or other named beneficiary can keep receiving a guaranteed income stream as elected.
MYTH: Annuities have no liquidity options.
Wrong! Many annuity contracts allow for penalty-free withdrawals and have provisions for emergencies and other contingencies. After a certain point in time, you can receive the full accumulated value of the contract and walk away if plans or circumstances change.
MYTH: Annuities cannot provide a reasonable rate of return.
Wrong! Due to principal staying intact, interest, and the power of belonging to an insurance pool, there’s a solid rate of return in a fixed annuity.
MYTH: A substantial portion of retirement income should be longevity insured.
CORRECT! Up to 75% of total wealth can be justified, under a variety of methods, to be longevity insured, which implies 75% of desired retirement income.
Contact Us For The Best Annuity Rates in Atlanta
Don’t allow these myths to get to your head about annuity products. We can connect you with the best rates here at Income For Life. Contact us today for your financial planning needs.
Matt Nelson, president and host of Income For Life Radio
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