As you age so does your income options. Eventually you will no longer be working. Many people look forward to retiring. Retirement is a time to look forward to playing with the grandkids and taking a cruise you always wanted. But you may not be able to do that if you’re worried about a monthly paycheck. Many companies provide retirement plans that include 401K plans but this may not be enough. A 401k only allows you to put a certain amount of money back against retirement. One of the things you might want to consider is a fixed annuity.
Making the Best Annuities Work for You
A fixed annuity is a way of saving money for retirement. You want to find the best annuity that will allow you to put this money back until you’re 60. This is a great way of adding to your retirement planning. A fixed annuity is an excellent option for creating a steady stream of payments want you retired. In a nutshell you’re giving yourself a regular paycheck. You don’t want to depend on a fixed annuity only for your retirement income but it’s a nice addition to your retirement portfolio. Often times this is used when your 401K has reached its limits. It’s always an excellent idea to have more than one source of income when you retire.
Guaranteed To Last a Lifetime
If you want income that will last as long as you do a fixed annuity is the way to go. Many times the things you can invest in against the future, such as Life Insurance, may end before you die. Not so with fixed annuities. A good annuity quotes will estimate what you want to put in with your expected life expectancy and tell you how much you can expect to get paid each month. The good news it is if you live longer than they think you will you still get paid.
Investments That Are Tax Deferred
Another great feature of fixed annuities is that it’s a tax deferred investment. Your annuity investment will continue to grow tax free until it’s used. The difference between a 401K and an annuity investment is you can put money directly into your 401K before it is taxed while with an annuity you pay your premium after taxes are taken out. You can also withdrawal your fixed annuity early but there are penalties usually around 10% and then they get taxed like regular income.
To get the best annuities for you need to call around a get different annuity quotes. Make sure you check out any companies offering fixed annuity. There are companies out there that provide rating systems that let you know exactly how well an annuity company operates. You’ll also want to make sure you read the fine print. Many times there can be hidden fees that aren’t shared up front that can cause problems. You don’t want to get hit with any unnecessary fees that you don’t need. So do get an annuity quote today and find out the best annuity options for your retirement portfolio.