An Annuity May Help You
Enjoy a Predictable Income in Retirement
Longer life spans, fewer pensions and the tumultuous
market performance of the past few years have left many
Americans longing for more certainty as they plan for or
enjoy retirement. And many have found the answer in
annuities. By directing a portion of your nest egg to an
annuity, you could secure a guaranteed lifetime income
Is an Annuity Right for You?
An annuity is an insurance contract that guarantees
you a continuing stream of payments in exchange for
a specified premium. Because that guarantee is only as
strong as the company issuing it, you’ll want to be sure of
the insurance company’s financial strength and stability
before making a purchase. Annuities allow you to choose
the length of time you receive payments and offer a variety
of payout choices, including an income for the remainder
of your life, payments for your lifetime and your spouse’s
lifetime, payments for a certain number of years or some
combination of these.
An immediate annuity allows you to receive payments right
away. It is often used to roll over funds from a retirement
plan or some other lump sum payment in order to produce
a steady stream of income. A deferred annuity lets you
begin receiving payments at a later date. It begins with a
savings phase, in which you invest money into the account.
You enter the income phase when you elect to annuitize the
account and begin receiving payments.
You can also choose between a fixed annuity, which offers a
set rate of return for a specific period of time, and a variable
product. Variable annuities allow you to allocate your
money among investment vehicles called subaccounts.* The
performance of these investments determines the value of
the annuity and the amount of your monthly payments.
Longevity insurance, a relatively new development in
annuities, begins paying out around age 85. With a
relatively small upfront cost, longevity insurance guarantees a substantial annual payout when you will likely need it
most – to pay for long-term care or other medical expenses.
The risk is that you will not live long enough to receive
We’re Here to Help
As part of a well-rounded retirement portfolio, an annuity
can give you peace of mind by offering some protection
against many of the financial risks facing retirees. But
annuities can be complicated and expensive, so they aren’t
for everyone. If you fear you may outlive your savings or are
concerned about how market performance may affect your
nest egg, an investment professional at St. Mary’s Financial
Services can help you determine if one of these options may
be right for you.
For more information on estate planning, contact Jack
Crane, CFP®, Vice President/Financial Consultant of
St. Mary’s Financial Services and Investment Executive
with Infinex Financial Group or David Smith, Assistant
Vice President/Financial Consultant of St. Mary’s
Financial Services and Investment Executive with Infinex
Financial Group at 603.629.1524. Our advisors can work
with you and your legal advisor to set up a trust that best
fits your goals and the unique needs of your family.