Annuities can be a valuable component of a robust financial plan for some, offering a variety of benefits designed to enhance financial security, especially during retirement. Below are some key advantages:
Annuities can be a powerful tool for generating a reliable, steady income in retirement, essentially serving as a financial safety net that lasts as long as you live. With different types of annuities available, you can tailor your investment to suit your specific needs, whether that's immediate income, future income, or even income that grows over time. By providing a predictable income stream, annuities allow you to focus on enjoying your retirement years rather than worrying about market volatility.
Beyond retirement income, annuities can offer a range of benefits that make them a versatile addition to a robust financial plan. For example, some annuities come with built-in death benefits, allowing you to pass wealth to your heirs in a tax-efficient manner. Deferred annuities offer the potential for tax-deferred growth, giving you more control over your tax situation both now and in the future. Fixed-indexed annuities can also provide exposure to market gains while protecting your principal during market downturns.
One of the most appealing aspects of annuities is their flexibility. Riders and optional features let you customize your annuity contract to meet specific financial objectives. Whether you're interested in increasing your income, adding long-term care benefits, or even creating a charitable legacy, there's likely an annuity option to fit your needs. This customization allows you to integrate annuities seamlessly into your broader financial strategy, adding layers of protection and opportunity.
For those concerned about market risk, especially as they approach retirement, annuities offer a lower-risk alternative to more volatile investments like stocks. With the options for guaranteed income and principal protection features, you can invest with greater peace of mind. In a well-rounded financial portfolio, the stability provided by an annuity can be invaluable, allowing you to take calculated risks elsewhere for higher potential returns.
Your Amerity advisor will explain annuities in more depth if this is a suitable area to explore as part of your holistic plan.
