Is A Variable Annuity Right For You?

There are many different options from which to choose when investing. The myriad of choices can often be a bit confusing. When making a decision, it can be helpful to think about why you are investing. If you are planning for your retirement, a variable annuity can make a lot of sense.

It is important to think long-term when planning for your retirement. A variable annuity can help give you peace of mind, regardless of what is currently happening with the stock market. Returns are variable, which differs from fixed annuity offerings. This offers the possibility for more growth and flexibility. It is also important to note that you will not pay taxes on your annuity gains until after the money has been withdrawn.

When combined with income benefit options, you can have the guarantee of a life-long income source. A spouse or other person can also be designated as the recipient of these payments. Although there are additional costs for these options, the guaranteed income protection they provide can be invaluable when it comes time to retire.

Risk is an important concept to consider when planning for your retirement. There are many factors to consider, such as the volatility of the stock market, inflation, and even the fact that the average life expectancy continues to climb. If you're worried about outliving your savings, the added assurance of a guaranteed income can really help.

As with any financial product, it is important to understand the terms, features, benefits and restrictions before investing. However, annuities can be a valuable and important component in your retirement planning strategy that should definitely not be overlooked.

For more information on variable annuities, continue reading here!

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