5 features making today’s annuities better than ever

Oct 12, 2015, 4:37 PM | Updated: Jan 31, 2016, 8:50 pm
...
This article is Sponsored by Trajan Wealth.

Between now and 2029, more than 10,000 baby boomers will retire each day; yet, a large portion of them consider themselves unprepared for life after work.

When planning for retirement, most people focus on accumulating money through investments, savings and retirement programs. As actual retirement nears, the emphasis needs to shift to creating a stable income stream. Unfortunately, most have no idea how to make that transition.

Annuities are a simple, effective way to provide an income stream during retirement. They have existed for hundreds of years.

Today, major insurance carriers offer annuities with features our ancestors never imagined. Most importantly, they can help retirees have the security and peace of mind.

Here are some of the features and benefits:Trajan Wealth Annuities Copy (1)

Contracts and riders

Most annuity contracts are fairly simple. You put in money either in payments or as a lump sum. After a specified term, the contract issues payment to you on a monthly or annual basis. The primary differences among annuity contracts are the types of riders available. A rider is an addendum or feature allowing you to customize the contract.

Joint or individual

Annuity payouts are usually based on the life of an individual or of a couple. An individual policy ends when the insured person dies. A joint policy provides lifetime benefits for a couple. So the payouts continue until the death of both people insured by the contract.

Return options

Fixed annuities pay a guaranteed rate of return and usually guarantee against any loss of principal. Variable annuities offer the option of participating in the stock market with the possibility of a higher return, but there is also a possibility of loss. Indexed annuities base their returns on the performance of an underlying index — frequently the S&P 500. They usually guarantee against any loss of principal.

Minimum or guaranteed income riders

Originally introduced in 2003, income riders have become must-have features for more than half of annuity buyers, according to allthingsannuity.com. In an article for marketwatch.com, Stan Haithcock explained income riders eliminate “longevity risk by providing a lifetime income stream. Income riders typically have a guaranteed growth rate that can be used for income, and can be flexible from a planning standpoint.”

In other words, these riders provide an income stream that is guaranteed for the life of the insured.

Death benefits

Most annuities will return any remaining contract value to a designated beneficiary, but some annuities offer additional death benefit riders. Some promise the full amount of the initial premium, less any withdrawals or fees. Still, others offer various increased death benefits from a stepped-up benefit based on the highest annuity value to a guaranteed death benefit that is double the initial premium.

Today’s annuities offer more flexibility than any other time in history. Anyone preparing for retirement should give them a close look and discuss a real strategy for portfolio stability and growth.

 

Jeff-Bio-Photo-255x300Jeff Junior – President, Trajan Wealth
Jeff Junior has spent nearly two decades in the financial services profession helping individuals and couples in or nearing retirement better understand and prepare for the challenges associated with the ever-changing financial landscape. He holds his Series 65 and Life & Health licenses, and has a proven track record of helping clients successfully align assets with objectives to leverage and manage investment portfolios that will weather market fluctuations. A well-known speaker in the greater Phoenix area and an active member of the National Association of Insurance and Financial Advisors (NAIFA), Jeff frequently hosts public educational workshops in the community on a variety of financial and retirement topics

 

Sponsored

...
Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
1 month ago
(Pexels Photo)...
KTAR.com

Sports gambling can be fun for adults, but it’s a dangerous game for children

While adults may find that sports gambling is a way to enhance the experience with more than just fandom on the line, it can be a dangerous proposition if children get involved in the activity.
2 months ago
...
Fiesta Bowl Foundation

Celebrate 50 years of Vrbo Fiesta Bowl Parade magic!

Since its first production in the early 1970s, the Vrbo Fiesta Bowl Parade presented by Lerner & Rowe has been a staple of Valley traditions, bringing family fun and excitement to downtown Phoenix.
2 months ago
...
Quantum Fiber

How high-speed fiber internet edges out cable for everyday use

In a world where technology drives so much of our daily lives, a lack of high-speed internet can be a major issue.
3 months ago
...
Day & Night Air Conditioning, Heating and Plumbing

Prep the plumbing in your home just in time for the holidays

With the holidays approaching, it's important to know when your home is in need of heating and plumbing updates before more guests start to come around.
3 months ago
(Desert Institute for Spine Care photo)...
DESERT INSTITUTE FOR SPINE CARE

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
3 months ago
5 features making today’s annuities better than ever