There are plenty of misconceptions prevalent on how annuities work and whether or not you should own one. Quite frankly, research shows that there are plenty of benefits to owning an annuity depending on your circumstances. However, due to the misunderstandings that are present and the lack of proper education on the front-side, most retirees and pre-retirees still shun the thought of an annuity from the onset. According to a 2015 study, only 8% of American retirees receive income from a private annuity.
Should this number be larger? For retirees that want security and safety for their retirement income lifestyle, the answer is most likely a resounding yes! So, what should you do? Make sure you understand the annuity on the front side before you write it off completely, and avoid these common annuity buyer mistakes!
Here are some questions to think about:
- Why are you buying the annuity in the first place?
- Do you know what the different types of annuities are?
- What is most important to you in retirement? The ability to spend confidently or the rate of return your portfolio obtains?
These questions, and more, will be answered on Income For Life Radio this week, so make sure to tune in and check back for the podcast at www.IFLRadio.com soon!
Matt Nelson, president and host of Income For Life Radio
Income For Life LLC
877-284-8929 | www.IncomeForLife.org