It’s a good bet that at some point, you’ve watched, read, and/or heard financial “gurus” discussing the importance of building up your retirement savings so that you can reach your ideal “number.”
Sure, setting money aside for your future security is an essential piece of the retirement planning pie. But here’s the catch: unless you are able to convert those assets into an ongoing and guaranteed future income stream, you take on the risk of running out of money down the road.
In fact, there are any number of potential risks that could knock your future retirement income stream off track – including a stock market “correction” (or even a minor hiccup), inflation, and/or the order in which you receive your investment returns. So, relying only on assets could actually be a danger to your ultimate financial security retirement.
Can Annuities Help You Achieve Retirement Stability?
One financial vehicle that can provide you with an ongoing stream of income in retirement is the annuity. But for many years, there has been an ongoing argument regarding whether or not annuities are good or bad.
The truth is that they can be good AND bad – but how that affects each individual investor really depends on what your financial goals are.
However, if you truly want to rely on a guaranteed stream of income in the future – regardless of how long you may need it – then there is scientific and mathematical proof that an annuity can get the job done!
Before making a determination about whether or not annuities are viable retirement planning vehicles, though, outlining what your ultimate goals are is a necessary step. And in retirement, the goal for most people is to relax and enjoy life, knowing that there is a steady stream of incoming cash available for paying your living expenses, as well as your other needs and wants.
Is an Annuity Right for You?
Even if you’ve been a good saver all of your life, the ultimate success of your retirement won’t be dependent upon how big your 401(k) balance is, or whether or not you have built up a sizeable portfolio.
That’s because retirees don’t live on assets – they live on income!
Just like any other “high ticket” item that you’re considering, it helps to know all of the intricate details about annuities before you make a long-term commitment with what could be a significant percentage of your retirement savings.
If you want to determine whether or not an annuity will fit in with your overall retirement planning goals, contact us using our secure contact form here. At Annuity Gator, our goal is to make sure that consumers have all of the information they need to make a well-informed decision regarding annuities.