An annuity is an insurance product that can provide you with a steady stream of income during retirement in exchange for a lump sum of money up front. One of the biggest advantages of an annuity is that it provides you peace of mind that you will not run out of income during your retirement years. Another advantage is that you will not have to worry about market fluctuations or other investment management decisions as the payments are guaranteed to you.
You can structure an annuity to provide you with a guaranteed income stream for as long as either you or your spouse is living or you have the ability to select a pre-determined number of income payments.
An annuity is a great way to ensure that your fixed expenses are covered for the rest of your life. This is a simple retirement planning option that ensures you won’t outlive your money.
An insured annuity allows you transfer a portion of your wealth (typically in non-registered funds) while enhancing your after-tax income during retirement. This is done by using a part of the income from the annuity to purchase a permanent life insurance policy. It is best to determine the cost and ensure that you would qualify for life insurance before committing to an annuity for this purpose. One thing to remember with an annuity is that it is irrevocable once purchased.
Contact us to today if you are looking for a guaranteed income stream during retirement.