A New Approach To Financing Retirement
‘Whatever you do, don’t try to sell us an annuity.’
When 60-something couples visit a financial adviser’s office for help with retirement planning, these are often the first words they say after sitting down. Most of what they’ve read about annuities has been eye-glazing or frightening. But don’t write off annuities yet.
Owning annuities can pay off in the long run—especially if you’re married and in decent health, don’t have a gilt-edged pension, and aren’t sure that your savings will support you (and your surviving spouse) indefinitely after you stop earning a paycheck.
“Indefinitely” is the key word here. Nobody knows for sure how long retirement will last, how much they need to save, or how much they can afford to spend each year in retirement.
Annuities help you deal with the financial implications of those uncertainties.
The word “annuity,” unfortunately, tends to get in its own way. People use it almost indiscriminately to describe five or six distinct financial contracts that serve different purposes for different people at different times.
Read more @Forbes
