Long-term care–whether at home, in assisted living or in a nursing home, costs a lot—especially if it continues for years. To protect their finances and leave something for their heirs, many people would like to buy long-term-care insurance (LTCI). But LTCI isn’t cheap. And there’s a big drawback. If you buy it and never collect… Continue reading Long-Term-Care Insurance via an Annuity Has Many Pros, Some Cons
Tag: annuity
An Income Annuity with a Time Limit Can Be a Great Solution
Immediate income annuities with a lifetime payout are popular for a good reason. By providing immediate monthly income that’s guaranteed for life, they help assure a worry-free retirement. But you don’t have to choose the lifetime option. Instead, you may want to choose a set income term from five to 20 years. Sometimes it makes… Continue reading An Income Annuity with a Time Limit Can Be a Great Solution
How To Shop for a Fixed-Rate Annuity So You’ll Get the Best Deal
One annuity may pay more than twice as much as much as a similar one—comparison websites make shopping easy. If you’re looking for a haven for your money, with a three-year fixed-rate annuity, you can choose one paying 2.00% annually or one paying 4.25%! Other than the rate, the two products are quite similar. If… Continue reading How To Shop for a Fixed-Rate Annuity So You’ll Get the Best Deal
“Free Look” for Annuities Offers Safety Valve If Rates or Circumstances Change
Occasionally it makes sense to cancel a new policy and get a better one. With most financial products, you’re committed once you buy. After you’ve bought a stock or a mutual fund, you can’t cancel the purchase and get your money back if you’ve changed your mind or the stock market has plummeted. Even with… Continue reading “Free Look” for Annuities Offers Safety Valve If Rates or Circumstances Change
Schwab Intelligent Income vs. Immediate Annuity: Which Is Better?
Most people worry about running out of money in retirement. In response, Charles Schwab & Company launched Schwab Intelligent Income ™ in 2020. The program promises monthly income from a regularly rebalanced portfolio of diversified ETFs (exchange-traded funds) plus a cash account. Participants pay no commissions or advisory fees. This is the newest strategy to… Continue reading Schwab Intelligent Income vs. Immediate Annuity: Which Is Better?
Often-Overlooked Way to Fund Your Roth IRA Has Many Advantages
A Roth IRA is a uniquely powerful retirement-savings tool because you won’t pay taxes on the money you withdraw during retirement. Different types of annuities accomplish different things and have distinct pros and cons—like the Swiss army knife of personal finance. Since they’re so varied, one type or another can work well for a Roth… Continue reading Often-Overlooked Way to Fund Your Roth IRA Has Many Advantages
Annuities Offer Powerful Tax Advantages Plus Some Avoidable Pitfalls
Annuities are designed to build wealth and income for your retirement through tax deferral. Interest earned in a deferred annuity (the most popular type) is not taxed until withdrawn. Deferring taxes accelerates savings growth because interest compounds faster without withdrawals needed to pay taxes. Compounding occurs when interest is paid on previously earned interest. Most… Continue reading Annuities Offer Powerful Tax Advantages Plus Some Avoidable Pitfalls
Income Annuities Provide Invaluable Longevity Insurance but Are Still Underused
Few adults would go without auto, home, life or health insurance. But the kind of insurance that protects against the risk of running out of money in old age is still greatly underutilized. It’s called a deferred income annuity or a longevity annuity. Most people planning for retirement should strongly consider an income annuity, and… Continue reading Income Annuities Provide Invaluable Longevity Insurance but Are Still Underused
A Year-End Checkup for Long-Term Financial Success in 2020 and Beyond
As 2019 wraps up and 2020 approaches, it’s a great time to make sure your savings and investments are aligned with your goals and not creating unnecessary taxes. Here are some key steps. Figure out how much income you’ll need in retirement. You can do it at any age, but it’s especially important in your… Continue reading A Year-End Checkup for Long-Term Financial Success in 2020 and Beyond
Pension or Lump Sum? Compare Payouts before You Decide
About half of pension plan participants can choose to take their money in a lump sum when they retire. If you have that choice or are offered a buyout, what’s your best option? Securing guaranteed lifetime payments directly from your company pension plan would seem to be a no-brainer unless you’re facing a financial emergency.… Continue reading Pension or Lump Sum? Compare Payouts before You Decide
Is Your Universal Life Insurance Policy about to Crash? What to Do If It Is.
If you’re stuck with a failing universal life insurance policy, what should you do? People who bought these policies in the 1980s and ‘90s are now often stuck paying much higher premiums to keep the policy in force. Since many of them are retired, they find it hard to shell out more. If you’re in… Continue reading Is Your Universal Life Insurance Policy about to Crash? What to Do If It Is.
Is an Annuity a Good Choice for You? Here are the Questions to Ask
Annuities can help you save for retirement, reduce risk, cut your taxes and guarantee a lifetime income. But they’re not right for everyone. How can you tell if an annuity is right for you? And if one is, what kind would best meet your needs? Deferred annuities—fixed, variable and fixed-indexed—help you save more for retirement… Continue reading Is an Annuity a Good Choice for You? Here are the Questions to Ask
Create More Retirement Income and Cut Your Longevity Risk
When you retire, your monthly income will plummet unless you have an unusually generous pension. But there is a way to replace income no matter how long you live. An annuity can pay guaranteed monthly income for the rest of your life. But some prominent self-serving ‘experts’ spread myths about annuities that discourage people from… Continue reading Create More Retirement Income and Cut Your Longevity Risk
3 Factors That Can Keep Retirees Barely Hanging on Financially
They were an active and vibrant couple, determined that retirement wouldn’t slow them down. And it didn’t, at least not initially, as they golfed, participated in activities with their homeowners’ association, and otherwise stayed engaged with the world around them. But a few years into their post-working years the couple grew concerned about whether they,… Continue reading 3 Factors That Can Keep Retirees Barely Hanging on Financially
Retirees With a Guaranteed Income Are Happier & Live Longer
Retirees who are surrounded by their family and friends – and who also have a substantial check coming in every month for the rest of their lives – are much happier, according to a study published in The Wall Street Journal several years ago. They also live longer, studies show. That makes sense because the… Continue reading Retirees With a Guaranteed Income Are Happier & Live Longer
Is Your Retirement Plan Ready for The Longevity Revolution?
Americans are living longer than ever, with the average life expectancy now rising to about 79 years. Some have referred to this trend as the “longevity revolution,” but it’s also creating a revolution in the way people think about retirement. What worked for retirees a generation ago isn’t going to work today. For most people,… Continue reading Is Your Retirement Plan Ready for The Longevity Revolution?
Two Ways to Reduce Risk if the Bull Market Has Skewed Your Asset Allocation
In the current bull market, many people have made so much money they now find their asset allocation is out of kilter. People who planned to put, say, 55 percent of their money in stocks may find they’re now 75 percent in equities. A bear market could wreak havoc on both portfolios and the psyches… Continue reading Two Ways to Reduce Risk if the Bull Market Has Skewed Your Asset Allocation
Tax Deferral and Guarantees Make Annuities a Compelling Way to Save for Retirement
If you’re contributing the annual maximum to your IRA and/or 401(k) plan, you’re ahead of most people. But tax-qualified contributions alone will probably not give you what you’ll need for retirement. Tax deferral is a powerful tool in saving enough to meet your retirement goals. And that’s why tax laws encourage people to use both… Continue reading Tax Deferral and Guarantees Make Annuities a Compelling Way to Save for Retirement