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How Denver Investors Find the Best Annuity Rates (And Why To Consider Annuities)
If you’re unfamiliar with annuities, it might sound like just one more fancy term that retirement advisors throw around, but don’t let your eyes glaze over just yet. Ask yourself these questions to determine if an annuity might be a good option for you.
- Would it hurt your quality of life, safety, or peace of mind if you were to run out of money before you die?
- Do you lie awake at night wondering if you’ll outlive the income that your nest egg will provide in retirement?
- Do you worry about whether you might get kicked out of your apartment, retirement community, or assisted living facility when you run out of money?
- Are you concerned that you might have to sacrifice your desired quality of living in retirement because you’re trying to make your income stretch long enough to last your whole life?
- When you hear nursing home stories, do you stress about whether you’ll have the money to protect yourself from going to an unsavory long-term care facility?
We all know that one day, we’ll reach an age where we can no longer work for a living. It’s hard to overstate how big a priority it is to ensure that your income doesn’t dry up on you when that day comes. Providing a comfortable income after you retire can’t save you from getting older, but it can certainly save you from many of the traumas of getting older, like ending up in the cheap-o nursing home.
It costs money to live just as much when you’re older as when you were younger, and your monthly income is the key to being able to continue to pay for the things you need. It doesn’t take a rocket scientist to figure out that if your income dries up, it won’t be much fun to go without basic necessities like food, shelter, clothing, hygiene items, or heat. Denver is too cold for that.
Annuities are just one strategy to provide a monthly income for yourself during retirement. They’re popular because they offer a guaranteed income amount in retirement—no matter how long you live.
This is unique. Most other forms of investments require you to make withdrawals from a lump sum or nest egg—and if that lump sum runs out, your income does, too. Many people fail to account for the contingency of living a longer life, but an annuity helps to shield you from these risks.
Let’s say you retire at 65. You have worked hard and saved the money to cover a comfortable lifestyle for 20 years, so you feel secure about the approaching years. But what if you live past age 85? What if you live to age 95? Your last 10 years of life could be very uncomfortable if you fail to plan adequately. The fact is, you don’t know how long you’ll live.
One way to illustrate this principle is through looking at a life expectancy chart.
For a one-year-old child, the average life expectancy is 75.68 years for men and 79.81 years for women. However, if you’re a man and you make it to age 75, the life expectancy chart does NOT predict that you’ll live only 0.68 years longer. No, if you’ve managed to make it this far, your NEW life expectancy is 10.18 more years. Suddenly you’re looking at the probability that you’ll die at 85. However, if you live to 85, again, your life expectancy isn’t 0.18 years – it’s now 5.36 years. The same principle holds true if you’re a woman. You live to age 79, and suddenly the life expectancy chart indicates that you have a probability of living 10.5 years longer. You make it to age 89, and you STILL have 5.64 years left on the probability table.
In other words, the longer you live, the longer you’re likely to continue to live. Everyone’s body is different. Everyone’s genes, lifestyle, and circumstances are different. If you’ve only planned for your finances to last until your original “life expectancy at birth,” you could be making a huge mistake. It would be a terrible thing to find yourself almost hoping you died sooner (because you realized that your resources were dwindling away), even though you actually wanted to live longer. Your retirement years should be a time of enjoying your family, friends, and activities, not stressing about where your next meal will come from or whether you can afford your medications.
That’s where the investment advisors at Income for Life come in. Matt Nelson and his team are in the business of delivering investment advice to people like you. Retirement income planning is a tough subject to tackle, so it helps to have a team on your side who can guide you to the options that are right for you.
One of those big questions is finding the best annuity rates. Not all annuities are created equal. For the same lump sum, say $100,000, different insurance companies will give you different quotes of what monthly income amount they’ll issue you. Rather than running around from one provider to the next, getting a ton of quotes, and being harassed by sales calls and follow up promotions forever, the easiest way to find the best rates is to turn to Income for Life. We have access to all the rates (and all the fine print behind the rates, such as hidden fees and other risk factors), and we can help you find the right annuity product for you. Not only that, we can help you to find the right kind of annuity based on your needs.
Give us a call to get started. Setting up your free consultation is about more than just finding the best annuity rates. It’s about finding the peace of mind that comes when you know that your retirement years are provided with income — FOR LIFE. Talk to us today.