One of the biggest challenges when planning retirement is ensuring that you have sufficient finances available to live the life you want to live once you retire. To put it simply, a long life requires a smart plan. An annuity is a long-term investment designed to provide a guaranteed income for the rest of your life. Payments are made to an insurance company that, in turn, promises to grow your money and provide you with payments upon your retirement. They can be a very effective means of ensuring you do not outlive your income.
Annuities offer many options and some degree of flexibility:
• Invest over a period of time or invest a lump sum.
• Choose to receive payments immediately or to defer the date.
• Select a fixed, variable or indexed rate of return.
• You can choose to receive payments monthly, quarterly, annually or as a lump sum.
It’s also important to understand that any investment you enter into comes with an element of risk. If you choose a !xed annuity, you will be
eligible for a guaranteed payout. However, a variable annuity will be subject to market “uctuations which could determine the performance
of your annuity and the payments you receive when you retire.