Retire Safe & Tax Free - AARP Says People Need Guaranteed Income... from an Annuity


Holding Your Nest Egg

In light of today's fragile and unpredictable economy, many individuals are forced to look at ways to provide GUARANTEED income for life from their retirement savings. This is according to a report entitled "Money Matters" from AARP the 40-million-member association for people 50 and up.

According to this report retirees should consider guaranteeing enough retirement income to cover such recurring expenses as rent or mortgage payments, utilities, food and medicine. Issues addressed in the report also include when to claim Social Security benefits, whether to buy an annuity and what to do with homes and mortgages.

"Rules of thumb no longer apply," AARP said in a statement. This report offers general financial guidance that challenges some conventional wisdom including not placing all of your retirement savings into the stock market at risk.

You may be aware that annuities provide regular payments for life, but relatively few people use them out of fear that they are risky or inappropriate. People want growth potential WITHOUT the risk. With people living longer, facing increasing costs and addressing new challenges every day risk cannot be part of the planning process for all of a person's monies.

Annuities can help retirees address today's economic challenges by offering greater potential for growth than what a traditional fixed asset can offer. Furthermore, annuities offer protection from market downturns.

When most individuals think of retirement they think about how to save enough money. We have not spent nearly enough time discussing the best ways to take that money and turn it into an income stream that lasts throughout retirement and a lifetime.

With raw memories of the recent stock market decline, consumers are reporting strong interest in safe investments and products for their retirement. Yet "annuity" seems to be a dirty word in many circles, particularly among financial advisors. They cite high fees, complicated guarantees on investment earnings, early surrender penalties, and agents who may not understand your financial goals or have your best interests at heart.

I DO NOT agree with these objections about annuities. Instead I believe annuities to be the strongest of retirement savings vehicles currently available to the consumer. Annuities have significant advantages and can be a do-it-yourself pension. In planning for retirement, you give a lump sum of money to an insurance company, and an annuity can start paying you a monthly income for the rest of your life, no matter how long you live or what happens in the economy going forward.

When you retire, however, you need to shift your thinking and focus on generating reliable lifetime retirement income, which is the goal of annuities.

Annuities may also be a good investment while you're accumulating retirement savings, especially if they offer guaranteed rates of growth on the Income Account Value. Annuities definitely deserve a place in your retirement income portfolio. Given that you're planning for the rest of your life, it's well worth your time to investigate them.

Contact: Marc H. Weiss, Archer Weiss Insurance and Financial Services

(818) 610-8560