Planning Your Retirement (Part 2 of 3)
In the previous article I showed how saving $1-$3 per day can provide a supplement to your retirement. You need 4 things to be wealthy: Time, discipline, a little bit of money ($1-$3 per day) and knowledge. The first 3 you have. The 4th, knowledge, well you can buy that from any good financial advisor. Here on our blog you are getting the knowledge for free! (you are welcome!) Hmmm, why not also save what you would have paid an advisor for the information I am giving you. (It would enhance your wealth further).
In this segment I am going to educate you about an (not “the”) investment option. This is not for everyone and is not the only option. PLEASE DO NOT make this investment without competent financial advice. Do not be like many who thought they were smart by getting a mortgage online. They ended up paying higher costs, got the wrong product, are paying through the nose now, and, realize they should have asked for help.
An annuity is an “insurance” product that pays you while you are alive. Yes, living benefits, not death benefits. You should look at it as part of your retirement plan. Truthfully, I use it for many clients as a substitute for social security (see part one of this series). It provides income during your retirement years, either in a lump sum or as regular payments, for a specified period of time or over your entire life. There are no contribution limits. Income can be immediate or deferred and come in fixed or variable amounts, depending on what you select. Taxes are deferred until you start drawing money, payments continue to your beneficiaries upon your death for the length of the contract, or, it can be paid to them in a lump sum, and these assets DO NOT have to go through probate.
Sounds great, but before you start investing in one get help from a professional. These are complex investment vehicles that have a lot of fine print and risks. Here are some sites you should visit, to educate yourself, before calling up your financial advisor:
Gives education and live quotes
Gives quotes
• www.annuityfyi.com
Calculates and self assessment tools
• Company specific sites
www.beneficialfinacialgroup.com
www.thehartford.com
www.protectiveannuities.com
www.ing.com
www.Annuity.com
Remember this may be “a” tool, not “the” tool for you.
End of Planning Your Retirement (Part 2 of 3)