As one thinks about the future, no one wants to be stressed about financial planning for retirement. The Institute of Financial Wellness has many qualified services and financial planning professionals that can help you manage your retirement portfolio. Learn more about how the benefits of annuities can help you plan for a long retirement from one of our distinguished podcast’s guests, Tom Hegna.
What Is an Annuity?
Our financial network was grateful to speak with retirement income expert Tom Hegna about how a qualified retirement plan should include annuities. For those unaware about annuities, they are insurance contracts that you can purchase to generate guaranteed income for your retirement. One of the benefits of an annuity is that, unlike bonds or stocks, the amount of income you receive is not affected by the market. There are two types of annuities that can help your retirement portfolios – immediate annuities and deferred annuities.
Immediate annuities provide a fixed income for your retirement. These life income annuities usually start providing income immediately and last for the remainder of your life. Immediate annuities are considered the best annuity plan for retirement since there are no expensive fees.
A deferred annuity is a contract with an insurance company that promises to pay an investor to supplement their retirement income, such as Social Security. There are various deferred annuities such as variable annuities, fixed index, and fixed annuities that can help improve your quality of life during retirement. The Wall Street Journal states that an additional benefit of an annuity is that research suggests that people live longer because it gives an incentive to live longer. By consulting with a retirement financial advisor, you can create an individual, qualified retirement plan.
The Disadvantages of Annuities
In our professional opinion, there are none! While annuities received bad press in the past due to high annuity rates, surprise surrender fees, and secretive agendas from financial advisors selling mutual funds, annuities are the only product you can buy that optimizes over the course of your life. However, there are few instances where Tom Hegna suggests that annuities may not be appropriate for the financial situation, such as:
1) For those under 30 who are saving for a house or child, an annuity may not be the best place to invest your money.
2) Never put all your money in an annuity because you cannot withdraw it before a certain age without receiving a penalty fee.
Why Is Financial Planning for Retirement Critically Important?
Financial planning for retirement is critically important to ensure that adults have enough money to enjoy their retirement. In today’s economic climate, there are concerns about Social Security and corporate pensions. While saving your money is a significant step, there is no guarantee that you won’t run out of money, especially if there is a medical occurrence. While you can plan and try to manage your retirement portfolio, a retirement financial planner may suggest an annuity for a secondary source of income after you retire. Our financial consultants can help you decide which annuity is best for your retirement portfolio and determine the best retirement plans for late starters.
As our mission to provide financial education continues, our network of certified financial planners strives to provide informative resources for you! Our retirement plan consultants want to provide the best advice for you to manage your retirement portfolio for the future. The IFW Retirement Roadmap is the best tool for anyone between the ages of 40-70 who needs to create a qualified retirement plan. Make an appointment with our for a customized retirement roadmap for you!
Contact Our Financial Planning for Retirement Experts!
Need more financial planning for retirement advice? T Institute of Financial Wellness not only provides financial education and resources, but we personalize our financial advice to your income and retirement goals. Instead of being overwhelmed by all the information out there, consult the certified financial consulting service professionals that have your best interests in mind while protecting your greatest assets. Contact us to schedule an appointment today.
Evan Sussman is honored to serve as Senior Vice President for IFW. Evan has been a successful financial professional for over 17 years. On December 24th 2019, Evan was diagnosed with Stage 3 cancer, and is currently on the road to full recovery. He is forever indebted to the doctors, nurses, and staff that took care of him. Evan has dedicated his career to helping people secure their financial health and well-being.