Nobody ever knows what the future holds. As uncertain as it is, we also don’t know the kind of needs we may have and whether we have the means to address them. Having income annuities alongside your retirement plan is a great way to diversify your assets and help you manage your finances.  

For most, financial management is a daunting task. If you’re not disciplined enough, you may live beyond your means, which can hurt you more than you’d expect in the long run. Thus, entrusting your financial management woes to a reputable financial planning firm will return in great results.  

calculating income annuities

What are Income Annuities, and How Do They Work?  

An annuity is a contract between you (investor) and an insurance company (insurer). As an investor, you pay a lump sum of money or regular payments over time. In return, the investor is promised a regular stream of income.  

An annuity may be immediate. Meaning, you get your income almost right away. It may also be a deferred annuity, where you begin receiving income at some point in the future – typically during retirement.  

A recent study conducted among American citizens found out that more people tend to live longer. That only means that your money must last longer as well. Therefore, it’s best when you have an income annuity all set for your future financial needs.  

Let’s look more closely at why you must have one for yourself.  

Steady and Guaranteed Income  

You have a choice of how often you get your income. It can be monthly, quarterly, semi-annually, or annually. Whatever option you choose, you get a steady source of income for as long as you live. If you live until 100 years old, the insurer is obliged to pay you until such time.  

This kind of surety helps you balance your other investments that are more dependent on market swings.  

Personalized Features  

Another good thing about annuities is that you can customize them based on your needs and your lifestyle. Insurance companies believe there’s no one-size-fits-all approach to determining someone’s needs, so you have the luxury of choice to design this for yourself. You may add benefits, bonuses, options, and beneficiaries according to your liking.  

Money-Management Assistance  

Imagine being 75 years old and you still have to manage your finances at the same time. Your retirement days are for you to relax and spend your remaining years without the hassle of managing your money. With an annuity, you can sleep well at night without the worry of budgeting your cash for the next months or years.  

You Can Choose When to Start Receiving Income  

Whether you want to start today or sometime in the future, it all depends on you. Most insurance companies don’t even pressure you to decide right there and then. You know what’s best for you, so you get to decide for yourself.  

Your Income is Not Subject to Stock Market Performance

Your income is not affected by the highs and lows of stock market fluctuations. You won’t have to check your stocks daily and worry about having enough for the next days to come. Truly, the benefits of having income annuities foreshadow the myths other people say about them.

saving from income annuities

Thinking of Getting Income Annuities for Yourself?  

The promise of a comfortable life through the benefits that income annuities provide is only as good as the insurance company you invest your money in. Thus, be careful with who you entrust your funds.  

For dependable and honest service, choose ABB Wealth Strategies. As a family-owned firm, we consider all our clients part of the bond, and we put their best interests forward. With decades of expertise and knowledge of the field, we can help you with minimized risks and maximized payouts. Contact our friendly team today, and let’s discuss your financial future.