If you have ever lost your job and found yourself out of work for more than a month or two, you know first-hand how difficult it can be to make ends meet. Your bills do not stop coming, even though you no longer have a regular income. Fortunately, most people of working age find another job and are able to recover from the temporary loss of income. But finding a job and trying to re-enter the work force when you are 65 or 70, and retired, is not an option you want to pursue. Social Security does not pay enough to provide you with the lifestyle you want and deserve. In order to assure that you will have enough income when you retire, you need to evaluate your situation today. Building your own private pension through annuities makes sense on several levels.
- Unlike stocks, bonds, mutual funds, and even managed money, only annuities can guarantee income for life.
- After five years of a bull market, the stock market appears poised for a big decline. You are fully protected against a correction in the stock market.
- Your heirs have probate-free death benefits.
Creating Your Own Guaranteed Income Stream
You can do something about it by creating your own private pension through the purchase of a fixed index annuity. Also known as a hybrid annuity, a fixed index annuity can be set up so that you will receive a guaranteed minimum amount of monthly income at a future date specified in the annuity contract. By adding a lifetime income annuity rider, you can guarantee that once you start your stream of income, it will last for the rest of your life, no matter how long you live.
There are two phases to a fixed index annuity. The first phase is called the accumulation phase, and the second phase is called the distribution or payout phase. In general, the longer you delay the beginning payout date, the higher your monthly income check will be. The best benefits of a hybrid annuity include:
- You can earn a higher rate of return than from certificates of deposit or other safe money investments.
- Your money accumulates faster thanks to tax-deferred status.
- You know the minimum annual interest rate you are guaranteed to earn.
- You can substantially increase your returns in a given year when the index your annuity is linked to rises (usually an equity index, such as the S&P 500 Index).
- You don’t lose any of your investment if the index goes down in a given year.
- You can use a lifetime income annuity rider to guarantee that you will never outlive your income, and you can also add the same benefit for your spouse.
Don’t take unnecessary chances with your safe money. Invest that money wisely for your future. Our annuity professionals are here to advise and guide you in the right direction. We don’t sell you the annuity that gives us the biggest return. Our clients come ahead of profits. We look out for your best interests. When you click on the orange button, you’ll get a no-obligation free quote, a free consultation, and a chance to learn more about the benefits of owning a hybrid annuity.