Archive for the ‘Annuity Planning’ Category

Retirement 101: Annuities

Monday, July 1st, 2013

Annuities are agreements signed between an individual and an insurance company that are put into place to achieve financial goals for retirement. Under an annuity, the contract-holder makes a one-time payment or series of payments in exchange for the insurer’s promise to make recurring payments to the retiree when he sees fit.

Adding to their appeal, annuities allow for tax-deferred growth of earnings and sometimes encompass a death benefit that will pay an allotted amount to a beneficiary should the need arise. If, however, withdrawals are made from an annuity, gains are taxed at ordinary income rates rather than capital gains rates. Significant penalties may arise, too, if money is taken from an annuity prematurely – usually in the form of surrender charges to the insurance company in addition to tax penalties.

Three types of annuities exist: fixed, indexed, and variable, which are outlined below.

Fixed Annuity: In this type, the insurance company pays a predetermined rate of interest – for either a definite or indefinite amount of time – as the annuity account expands. Like the interest rate, the amount per dollar paid by the insurance company in the account is also specified.

Indexed Annuity: Insurance companies, in this variety, credit the annuity account with a return based on changes in index, while ensuring that the agreed upon value will not drop below a pre-set minimum, even if index performance changes.

Variable Annuity: This kind of annuity allows the user to decide on purchase payments from a breadth of various investment options, usually mutual funds. Depending on the performance of payments, the amount of periodic payments receives changes according to the performance of investment options selected.

In order to help you determine which type of annuity makes the most sense for your investment purposes, it’s a good idea to consult with a financial advisor who can help you to develop a plan based off of your current financial situation and goals for the future.

For more information about Annuities and our services or for professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

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Annuities

Benefits of Professional Financial Planning : Retirement Planning

Wednesday, May 23rd, 2012

The primary goal of a professional financial planner is to help you maintain a comfortable lifestyle while still putting away enough money for the future. What is even more impressive is that financial planners are able to consolidate all aspects of your financial life into one coordinated plan. So, unlike stockbrokers, bankers, insurance agents, or accountants, your financial planner helps make your life less complicated…not more complicated.

Additional Benefits of Financial Planning

  • Assistance With Managing Your Finances: Let’s face it; you just do not have the time to breathe, let alone properly manage your own finances. This is where a professional financial advisor can help!
  • Confirm Your Objectives are Being Met: How are all of your investments working out? You have several specialists – stock brokers, loan officers, bankers, etc. – telling you how each piece of your financial puzzle is doing, but what about the bigger picture? How is each investment working as a part of the whole financial plan? A financial planner is certainly not intended to replace any of your existing advisors, but what he/she can do is evaluate your total financial situation and coordinate strategies which do not interfere with any of your stated goals and objectives.
  • Monitoring the Implementation: Your stated goals and objectives can never be met without putting the financial plan into action. A financial planner will ensure that all phases of your plan are not only implemented, but also monitored to ensure they are working out.
  • Frequent Plan Review to Remain on Schedule: Your financial plan should be reviewed on a continuing basis. A financial advisor will frequently meet with you to review your current financial plan and, if need be, reevaluate your financial goals.
  • Provides You with Peace of Mind: Sit back and relax, knowing you and your future are in good hands.

 

Most people, at some point in their lives, will need financial advice. When the time comes for you to reach out to a professional financial advisor, whom should you trust? How can you be sure that the financial advisor you choose has your best interests in mind? How do you know that your money is in good hands?

The Answer: Trust Safe Retirement Solutions!

For more information about Professional Financial Planning, or for professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

Safe Retirement Solutions’ financial advisers help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

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Why Consider Financial Planning?

The U.S. Government Accountability Office Recommends Income Annuity as a Retirement Income Option

Tuesday, January 24th, 2012

In a U.S. Government Accountability Office (GAO) report, Ensuring Income Throughout Retirement Requires Difficult Choices, financial experts recommend buying an immediate annuity to supplement your retirement income. While Social Security continues to be the primary source of fixed income in retirement, it fails to meet all of the financial needs of retirees. Other contributing factors in the growing importance of income annuities include:

  • The shift from employer-sponsored defined benefit pension plans to defined contribution plans
  • Increasing life expectancies
  • Retirees are being forced to assume more responsibility for managing their savings to ensure that they have sufficient income throughout retirement

An income annuity is a wonderful alternative to self-managing savings, offering a steady source of income that retirees will not outlive. Other benefits of income annuities include:

  • Help protect retirees against the risk of underperforming investments
  • Help protect retirees against the risk of outliving their savings (longevity risk)
  • Help relieve retirees of the task of managing their investments at older ages when their capacity to do so may be diminished, and
  • Provide a base of guaranteed income that may serve as a dependable “cushion” for retirees

Still, income annuities are not for everyone. Consult a financial adviser to find out if an immediate annuity makes sense for you.

If you have any questions about what you have just read, or if you would like to know more about annuities and retirement planning, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Sources:

GAO Report Suggests Annuities as Retirement Income Option