The secret to guaranteed retirement income
May 2, 2022, 10:49 AM | Updated: Oct 3, 2022, 7:53 am
If you’re anything like most Americans, thoughts about your retirement probably come with a mixture of anxiety and excitement. After years of hard work, you will have finally reached a point where you have more time to yourself, more time to engage in hobbies, to travel, and to spend time with your family. But most Americans fall woefully short of the amount of money they need to enjoy the kind of retirement lifestyle they want. When you go from having a steady paycheck to relying on Social Security, you may realize that the expenses of the lifestyle you want outpace the income from Social Security or interest on your investments. But there’s hope in the form of an insurance product that can provide you with a steady stream of income in retirement: an annuity!
OK, so annuities aren’t really a secret, but they are so misunderstood that they might as well be. Once you understand what an annuity is and how it can benefit you, you could decide this “secret” is the perfect supplement to your retirement plan.
What is an annuity?
An annuity is an insurance product. All insurance products involve a transfer of risk from you to the insurance company. In the case of an annuity, you are transferring the risk that you outlive your retirement income to the insurance company. There are two different phases of an annuity, an accumulation phase and an income phase. During the accumulation phase, your premium has a chance to grow as you earn tax deferred interest. During the income phase, the insurance company gives you a paycheck for the period of time you select, including for the rest of your life (that’s the risk transfer piece).
It’s important to understand that there are several different types of annuities. They all have some of the same benefits including guaranteed lifetime income and tax deferral, but they are different in how they accumulate interest and what fees you pay to have them. The most basic type of annuity is a fixed annuity. A fixed annuity guarantees you a specific crediting rate for a period of time , meaning as long as you keep your money in the annuity during your term, you will earn that rate. And when you’re ready for your paycheck, you can let the insurance company know and begin your income payments.
That sounds great, but how do I get one?
Annuities are an impressive addition to your retirement portfolio, but they haven’t received the attention they deserve because, like many other insurance products, the process to purchase one has been complicated. In the past, annuities were only sold through insurance agents. This meant you had to research and find an agent, meet with them over several sessions, and then sign documents, in person, to purchase the annuity. And after that, you would have to wait weeks while your check was cashed and your annuity contract was assembled and mailed to you. Recently, a company called Canvas Annuity has brought a streamlined, direct process to the market that takes these time-consuming pieces out of the equation and allows you to purchase a simple-fixed annuity online, without ever having to meet with an agent. Canvas Annuity sells high-rate, fixed annuities online. The application takes less than 10 minutes and their website allows you to fund and sign, all online, any day or time, from the convenience and comfort of your own home. And, if you want some extra help, you can talk to one of their friendly, licensed agents who can assist you with the process.
How do I get started?
An annuity provides peace of mind. Even if you live to be 120, the insurance company will continue to send you a check each month.
If you’re interested in building your retirement savings with a product that gives you high crediting rates today and provides guaranteed income in retirement, check out www.canvasannuity.com. Rates are subject to change at any time so lock in your guaranteed rates by applying today and get peace of mind knowing your paycheck will be waiting for you when you retire.