We work our entire lives to save for retirement with the goal of living comfortably without having to worry about money during our twilight years. When we finally get to retirement age, the last thing we want is not having the money we were expecting because that can result in undue heartache and stress. ABB Wealth Strategies is here to help you mitigate retirement risks with our expertly picked annuities in Oakland County.
Imagine being five years into retirement when the economy enters a recession. Your investment portfolio starts to dip and now the money you thought you could count on is slowly ticking down without being able to do anything about it except hope that the market improves. This is the risk we expose ourselves to with traditional retirement options. Annuities eliminate this gamble by guaranteeing your income so you can live comfortably regardless of what the market is doing.
Annuities in Oakland County are regularly made payments that result from a contract between a buyer and an insurance company. The terms of the contract involve the buyer making either one lump sum payment or a series of payments to the insurance company. In exchange and upon a pre-determined date, the insurance company fulfills its end of the contract by making payments to the buyer for a number of years outlined in said contract.
Many retirement plans like traditional IRAs and 401(k)s come with certain inherent risks. This is because your returns are dependent on stock market performance, and if history serves as a lesson, the market can be unpredictable and volatile.
Some financial advisers might try to explain away this risk by saying that you should look at the long-term performance of a given portfolio rather than the year-to-year. This is because they want to focus on the average earning of the portfolio rather than the peaks and valleys.
Although sensible, what that perspective does not take into account is what happens if your portfolio takes a hit during the distribution phase. As you are withdrawing money from your account, there are less total funds available to grow. That means that if there’s a drop in the market, a crash, or if your investments simply underperform, not only will you have less capital to recuperate, you are also no longer adding to the account, making the growth slower.
Unlike traditional IRAs and 401(k)s, annuities in Oakland County eliminate virtually all risks from retirement planning. Instead of your retirement account depending on how the market is doing year to year, you are guaranteed a reliable income stream. This means that you don’t have to worry about your money running out before you are expecting it. Many annuity programs are designed to last decades.
Additionally, IRAs and 401(k)s don’t always guarantee that your returns will survive you and pass onto your family. Annuities in Oakland County can be set up with survivor benefits so that your loved ones can have some financial security as well.
Furthermore, annuities are tied to an insurance company, which makes them safer. The market can change in a second due to world events, news about a CEO, or new legislative policy. Annuities in Oakland County, on the other hand, are not subjected to these variables – it would take the entire company collapsing for the terms of the contract to be void.
ABB Wealth Strategies is your resource for safe and effective retirement planning. We will walk you through all your options and help you find an annuity that best fits your retirement plan. Get in touch with us today and schedule your first consultation to get on the road to a comfortable retirement!
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