Investment options abound, but many of them have serious pitfalls because of the chance the money could disappear if the stock market crashes or if the funds are not managed carefully. Those who want to make sure they can have an income when they need it and make sure they minimize risks will want to look into an annuity today. This could provide a number of benefits for them in the future.
What is an Annuity?
An annuity is a type of investment designed to provide regular payments to the investor. Typically, an annuity is used to ensure someone continues to have an income after they’ve retired and used their retirement funds. This type of investment is designed to help people make sure they do not run out of money and to protect their savings against a stock market crash. Though they might lose gains during a stock market crash, their original investment will be safe so they will still have some money. This makes the annuity a better option for many people than simply investing in stocks because they know they have some money that will be safe no matter what happens.
Who Should Look into an Annuity?
Many different people will want to look into an annuity at some point. Most people will wait until they have maxed out their contributions for their retirement funds before they start looking into an annuity. An annuity is not right for someone who needs to access their savings regularly or who might need to withdraw some or all of the money before they are 59 years old. Anyone who has maxed out their contributions, who does not need to access the money immediately, and who is otherwise looking for a way to invest their savings might want to speak with a professional about an annuity today.
Is it Possible to Do This Alone?
It is possible for someone to follow the techniques used in an annuity on their own. However, they must be comfortable with managing a financial portfolio and understand how the annuity works to be able to do it on their own. While it is possible for someone to do this without assistance, most people are going to prefer having assistance managing the annuity. There is a small fee for the professional assistance, but it is often worthwhile to pay the small fee and make sure everything is done properly.
Are There Other Benefits to Using Professional Assistance?
Beyond just having help managing the portfolio to make sure everything is done properly, an annuity is tax-deferred. If someone is currently in a high tax bracket, for instance, this can help them save a significant amount of money that would normally go to taxes. They get the benefit of professional assistance to secure their money and help them manage the portfolio, plus added savings on the taxes they would normally need to pay.
If you’re looking for a safer way to invest your savings, make sure you consider an annuity. This could help you get the added income you need in the future and allow you to make sure your savings are safe just in case the worst happens. Take the time to speak with a professional about how an annuity works and why it might be a good option for you. They can help explain how everything you’ll need to know and help you make sure this option is one that will help you provide for the future.