How Can Annuities Help You Retire?

These days, lots of us are worried about our retirement incomes. We not believe that social security will provide us with enough money to live on, and we have not done enough to save money for our golden years. The earlier you start planning for retirement, the better off you will be.

Fixed annuities are one way that some careful retirement planners intend to increase their retirement income. Annuities are sold by insurers. They are meant to help you invest so you can increase your assets and income. There are several types of annuities, and the type that you choose depends upon your needs. For some people, the advantages of annuities are very attractive!

Do you want to retire soon? If so, do you have a lump sum of cash that you can use to start your annuity? You may have this cash because you have saved it, gotten a lump sum from your employer, or even been involved in a lawsuit. If so, you could use this cash to start your single premium immediate annuity. These are funded with one large payment at the start.

You can begin the account, and then you can start collecting income checks the very next month. In this way, retired people can get extra income from the money they have set aside.

If you do not plan to retire for several years, you do not need to have a large sum of money right now. You may begin a deferred annuity with a smaller sum of money. Some of these annuities allow you to keep contributing to the account over many years or decades. This money will grow so that you do have a larger account when you want to retire. At retirement, you will be able to collect regular checks. These are called deferred annuities because you do not make withdrawals right away.

You should just regard this as a simple explanation of the basics of fixed retirement annuities. In order to get more information, you could chat with a financial professional. He or she should be happy to illustrate particular products that may be good fits for you. You should be able to consult with the professional for free, or for a very low fee. They tend to make their money when a client actually signs up and deposits money!

Annuities are not the right solutuion for every retirement planner. However, they can provide many folks with a good way to increase their retirement income!

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