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 in retirement.

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 the payments.

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.

* Variable annuities involve fees and expenses, including possible surrender charges by the issuer for premature withdrawals. All guarantees are by the issuing insurance company and are subject to the claims paying ability of the insurance company. The investment performance of subaccounts and variable annuities is not guaranteed.

Please note that neither this financial institution nor any of its affiliates give tax advice. Consult a tax advisor for information specific to your situation.

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. St. Mary's Financial Services is a trade name of the credit union. Infinex and the credit union are not affiliated. Products and services made available through Infinex are not insured by the NCUA or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any credit union or credit union affiliate. These products are subject to investment risk, including the possible loss of value.