Looking for Guaranteed Income?

Here at Annuity Rate Shopper we help clients every day design custom strategies aimed to get them the income that they need in order to feel comfortable in retirement.  In a traditional investment portfolio (stocks, mutual funds, and bonds) a financial advisor will tell you that should only take between 4% & 6% per year of income.  For example if you are retired and you have $100,000 invested into a moderately aggressive portfolio you should be able to withdrawal $4,000-$6,000 per year in income and feel fairly comfortable that you will not run out of money during your life.

The problem with this approach is that you still don’t have 100% certainty that your money will last for the rest of your life, especially given the volatility we saw in the markets in 2008.  Another problem is that most retirees would need to draw on 100% of their retirement savings to make this a reality (given a 4-6% withdrawal rate).  This is problematic because what happens if you need more money for an emergency? 

An immediate annuity can offer guaranteed income at a much higher payout, typically 9-12% of the initial investment.  That means a retiree can invest ½ to ¾ as much into an income producing investment and be guaranteed 100% that they will receive a steady stream of income for as long as they live; No market volatility.  With the remained of their money we can create an emergency fund or invest it much more conservatively.

To find out more about immediate annuities and how they can help click here.

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