subject: Should You Get A Retirement Annuity? [print this page] One of the newest products designed to aid people in their retirement is a product called the retirement annuity. A retirement annuity is an insurance product, designed to compliment your existing retirement plans. The product is designed as an addition to your IRA, pension and social security accounts. So, how do you decide if it is the right solution for you? You can start by asking yourself a few questions.
Do I Have Enough for Retirement? Will I?
Look over your retirement accounts and where they are projected to be when you retire. Do you think you are going to have enough money once you hve retired? If so, do you think you are going to have enough money to live comfortably, or just enough money to get by? Do you have things you want to do, such as traveling or a new hobby? If so, is there going to be enough money for you to enjoy your retirement to the fullest? If you do not believe that there is going to be enough money in your retirement accounts by the time, then a retirement annuity may be the perfect way to help supplement your retirement income and insure that you get the most out of your retirement.
When Should I Get my Retirement Annuity?
The answer will be different for everyone. It depends on your age, income and how much money you can actually save right now. An annuity grows tax deferred, but that would not help at all if you will be in a higher tax bracket when you begin drawing payments from it. Luckily, chances are that in most cases, your retirement will put you in a lower tax bracket. The rule of thumb is that you should wait at least until you have made all the contributions that you can to your traditional retirement accounts before you begin investing in a retirement annuity. Once you have maxed out your traditional accounts, you can then begin thinking about a retirement annuity.
What Can It Do For Me?
A retirement annuity, as stated above, is a product designed to supplement your existing retirement accounts, and will hopefully grow as time goes on. The annuity will add to your existing accounts, providing you with more income upon retirement. You can use this money in any way you like, just like normal income. Your annuity check can be used to pay bills, travel, take up a new hobby or pretty much anything else you can think of. A retirement annuity is an excellent product to help you finance your retirement and will allow you to do more of the things you intended to do with your golden years.
by: Katherine Smith
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