Is an annuity right for you? Are you clear on what it entails and what it costs? Why would someone want one? Find out on today’s podcast!
(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)
You may hear about annuities constantly, but is it a form of retirement income that is right for you and your financial plan? Often, people don’t realize that there are several different types of annuities. The type of annuity you have or consider getting can dramatically change what sort of benefits or return it offers.
Consider what kind of return you’ll get after you pay a certain amount of money. If you are going to put money into an annuity, you’ll need to know how long it’s going to last you. How much do you pay a year for the rest of your life?
Be careful to understand about the lack of liquidity in an annuity. What happens if you have a health crisis? What kind of surrender fee would you have to pay if you needed the money?
Make sure to ask a lot of questions to really understand what is involved in the annuity. What kind of fees does the annuity have? What kind of growth does it get?
Ultimately, if you get an annuity, you want to be confident that it is the right thing for you and your plan. To do so, you’ll want to make sure you understand all of the details involved and that those details align with your goals.
Listen to the full episode to hear Brian’s thoughts and advice when it comes to annuities or click on the timestamps below to hear a specific segment.
[1:01] – Does an annuity provide a steady form of income worth having in retirement?
[5:05] – Ask, “How much will I get out of an annuity if I pay X amount of money?”
[5:40] – Brian shares a story about a client who had an annuity and had to pay a surrender penalty.
[6:58] – Many annuities have high fees that are misunderstood.
[7:32] – Check into the fees, growth, and details of an annuity.
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