June 1, 2023
When engaging in financial planning, what do you expect from your advisor? There are numerous areas to focus on, and the outcome will vary based on individual needs and answers to specific questions:
It’s vital to work through these considerations, preferably with a Certified Financial Planner Professional™, ensuring your life and future are well-planned.
Annuities are investment products designed to offer a guaranteed income stream for a predetermined period, often for the entirety of one’s life. Purchased from insurance companies, annuities involve regular payments or a one-time lump sum payment to the insurer. In return, the buyer is entitled to a guaranteed income stream in the future.
There are several types of annuities, with fixed and variable annuities being the most common. Fixed annuities promise a set rate of return, guaranteeing a minimum interest rate for a specified period. In contrast, variable annuities allow the buyer to invest in various options like mutual funds. The return on these investments depends on the performance of the chosen options, meaning there’s a possibility of losing the principal investment.
Annuities can be structured to provide income for a set period, such as 10 or 20 years, or for life. The income amount is determined by factors like the initial investment, the buyer’s age, and the payment period’s length.
One of the primary benefits of annuities is their guaranteed income stream, making them attractive for retirees seeking a stable income source. However, they can be complex and may come with fees and other costs. It’s essential to work with a financial professional to evaluate the options and determine if an annuity aligns with one’s financial goals and needs.
Until next month, Wayne
Celebrate the sweet, fruity, and crumbly flavor of a homemade peach crisp. This easy recipe is perfect for days that deserve a sweet ending. Best served warm with vanilla ice cream.