The following are a couple tips on deciding on what kind of annuity that you should get. A lot of information out there is bloated an intentionally tries to confuse you, and you wend up possibly deciding upon something you aren’t fully aware of. Let’s change that, shall we?
1. Don’t have a traditional pension?
Consider your options. Most people may not retire with a traditional pension. If this is the case, you can use an income annuity to have a sort of build your own pension.
2. Count on living longer
Don’t assume that you will pass away young. People underestimate their lifespan and about half of 65-year-old Americans will live past the age of 83. Take a look at possible annuities that help with extended retirement funding. Women tend to outlive their husband, and because of this, they could risk running out of money in their lifetimes. This is where a “joint-and-survivor” annuity would come in to play.
3. Get protection from inflation
The cost of living is always rising and can erode your purchasing power during your retirement. And income annuity with an inflation rider or a variable income annuity can help for this reason.
4. Take a look at your needs
Try to estimate your living expense while you’re in or about to go into retirement and calculate all the sources of income that you currently have. This will make it easier to know if you’ll need an income annuity.
5. Be familiar with of risks
Figure out what risks you can tolerate and figure out what risks you can’t. If the Dow Jones Industrial Average nosedives 1,000 points and it doesn’t really affect you, then you more than likely don’t require a life annuity…