Fixed Annuities & Retirement

Fixed Annuities

There are numerous types of fixed annuities, ranging from payments for a set period of time to payments that are dependent on the life span of an individual. The type of the fixed annuity depends entirely on the structure needed for the individual investor.

One of the most appealing aspects of a fixed annuity is that it pays a fixed dollar amount for the duration of the investment. This can be a particularly appealing feature in times of market volatility (something pretty common these days). The fixed annuity behaves similar to a CD, and provides a guaranteed payment for the duration of the payout period.

Another appealing attribute of fixed income annuities is the ability to provide income for the duration of an individual's life. A lifetime income annuity gives retirees a fixed income that they will not outlive. This can be a powerful tool to provide additional security during retirement.

Fixed annuities are often misunderstood by investors, and as a result carry a certain degree of uncertainty. Many people ask themselves: how do annuities work? In order to successfully and prudently invest in annuities one must form in their mind at least a general understanding of how exactly do annuities work. As with other investments, it is important to fully educate yourself regarding annuities before making a decision. It is important to seek the advice of qualified professionals regarding any investment. Individual circumstances warrant different investment approaches.

                                                                                      

Retirement

    What is Retirement?

Retirement is the beginning of a new stage of life. Work is only part of what you do as a person. When you retire from working, whether fully or partially, you'll have more time for the other interests in your life.

Planning your retirement is a very personal process, not simply following a one-size-fits-all plan. Your retirement plan should be based on your vision of the life you hope to lead, and must also take your financial picture into account.  The best time to start planning your retirement is while you're still working. It's never too early to start your research. The important thing is to get started, so you're not left making all the important choices in your last few weeks on the job. 


    How Much Money Do I Need To Retire?

Calculating your retirement needs can be confusing and scarey because there are many unknown variables such as; future lifestyle changes, employer benefits, social security, etc.  One thing we do know, however, is that the need for individual retirement planning is more important than ever due to decreasing employer benefits.  Regardless of whether you have employer retirement benefits or not, the need for individual retirement planning is imperative. 

If you would like a quick and easy way to get a grasp on where you are are and how much you will need to save to be prepared for retirement you can use a retirement calculator.  Another option is to set up an appointment with a financial professional to get a much more in depth review of your current situation and future goals.