Annuities

How would you feel going to sleep every night knowing that for the rest of your life, you have guarenteed income flowing in every month? Pretty good, I imagine ~ and that's exactly the benefit that an annuity has the potential of providing.

An annuity is actually the opposite of life insurance. While life insurance protects your family should you die too soon, an annuity can protect you if you live too long. It is a contract with an insurance company where, after investing a lump sum of money with them, they can potentially provide a stream of income to you for the rest of your life! They're banking on you dying around the average life expectancy age....but let me ask you this: what if you make it to 105? Assuming you have a life option annuity, they legally have to keep paying you every month! 

The private sector, where most people work, don't usually get access to a defined benefit plan: also known as a pension plan. In Nevada, public employees who work for the city, state or local government (such as teachers, fireman & police officers etc) have PERS, where retirees receive a percentage of their salary guarenteed for life based on service years worked. This is a form of annuity: ensuring that that they have an income stream at retirement.

Private sector employees, for the most part, have defined contribution plans, such as a 401K or IRA, with no guarentees. However, if you are (or were) in the private sector, assuming you have a lump sum, you can actually create your own 'pension plan' by setting up an annuity that you can access either immediately in retirement (age-specific requirements), or at a later date, when you do retire. And if you are (or were) in the public sector, and have a lump sum to roll over, what better way to supplement your PERS retirement checks now (or in the future)?

Now, an annuity can either be immediate or deferred. An immediate annuity is accessed immediately, where it is usually annuitized, and a stream of income is paid to the recipient. A deferred annuity is where a recipient invests a rolled over lump sum for a period of time before having the option to annuitize it in the future. Also, varying growth opportunities in different types of annuities exist, and it is critical you have a knowlegable professional to help guide you towards the one most optimum to your specific financial circumstance.

So let me ask you: if you have a lump sum that needs to be rolled over, and I could tell you about a tax deferred retirement tool (that has upside market growth potential and complete protection of your principal), which can potentially provide an endless stream of income to you for the rest of your life when you retire, would you be interested in hearing more? Contact me for a 90 minute appointment in the comfort of your home. Regardless of whether or not you become a client, referrals are appreciated.

On a closing note, remember that thoughtful people plan for three generations ~ thoughtless people plan for Saturday night.