Retirement Annuity Insurance In Surprise, Peoria and Phoenix, AZ
Improve your Retirement Plan with Properly Utilized Annuities in the Greater Phoenix, AZ Area, including Peoria, Sun City, and Surprise.
When looking into what products are ultimately right for you in your retirement, it is likely that someone out there may bring up annuities, or maybe you have found some opinions and facts on annuities by doing your own research. For those who are new to annuities, it is highly recommended that you do not first turn to opinion-based content regarding annuities, rather; you should seek to understand the basics.
Once you have the basics down, then it’s important to seek the advice of a professional who has a well-rounded understanding of the pros and cons of annuities. This is when you will begin to discover whether the Advisor’s perspective on annuities is based on genuine truths or motives that drive their business model. It is possible to have both factors in your business practice, but not as common as you may think.
What are annuities?
When considering annuities, we ask our clients 1 basic question – “would you suffer in the event that your income was to decrease more than 20% or was to run out 20% earlier than anticipated? If our client answers “yes” to this question, then an annuity should be considered.
Considering annuities does not always mean that you purchase one. There are many clients who are simply not the right fit for annuities, and this is where education is key. There are many advisors in today’s industry who believe everyone should have an annuity, and there are advisors who believe that annuities are always bad. The Turning 65 Advisor does not agree with either of these stances. Annuities are a tool that can be used to assist someone in accomplishing the goals they have set forth in their retirement. To explain this, we like to use “The Drillbit Theory”.
What is “The Drill Bit Theory”?…
The truth of the matter regarding annuities is the focus needs to be placed on “what do annuities do for the consumer”. In most cases, Annuities are designed to provide a pension- like form of income to the consumer. This means, an income that you cannot outlive, and that will not fluctuate resulting from economic downturns. While there are many concerns to cover regarding annuities, it is first important that we understand the basic “why” relating to the purpose of the common annuity purchase.
Aside from income protection, there are several estate protection components to annuities that make them very appealing to many consumers. Many annuities today have features that created extra liquidity, income, and tax protections in the event that you as a retired individual need to access Long Term Care services, become chronically ill, have a major medical diagnosis and are terminally ill. These are just a few of the key benefits you may find value in when purchasing an annuity.
While there are some major pros to purchasing an annuity, here are some things you should know. There are surrender penalties on annuity contracts. Often between 4-12 years depending on the contract you purchase. While 12 years may sound like a long time to remain committed to a contract, many of these contracts are designed to provide pension- like income, therefore; it may make sense to some consumers that the annuity at hand is a long term play within their retirement.
That said, with annuities, distribution is the name of the game. Oftentimes, annuities win in the department of creating a substantial livable and secure income stream to the owner – allowing you to focus on how you will spend your retirement with your family vs. concerning yourself with whether you will run out of income in your retirement due to longevity or market volatility.
How do annuities really work?
Call Today to Learn More About Your Best Annuity Options
Please call 623-777-3315.