Using a Variable Annuity to Provide Cash in Retirement

Consider purchasing a variable annuity if you are anxious about your ability to maintain a comfortable standard of living throughout your retirement years.

Variable annuities can give supplemental retirement income. You have the option of investing your money in a variety of different stock funds, bond funds, and other types of funds. Any returns will be subject to taxation once you take money out of the account.

Why Use Variable Annuity

Also, variable annuities have the potential to be annuitized, which means they can transform into a continuous flow of periodic payments. No matter how long you live, an annuity can continue to bring in money for you. If you so choose, you and your spouse might receive an income from a combined pension for the rest of your lives.

After age 50, you could be in the best position to invest in a variable annuity. At that point, you will be very close to 59 and a half, which is the age at which you will no longer be subject to a 10% early withdrawal penalty.

It would help if you looked around for a variable annuity with minimal yearly expenses and a short time until the surrender charges are eliminated. This is because variable annuities may be rather pricey. 

Benefits of Variable Annuity

Buyers of variable annuities are being offered living benefits in increasing numbers. That is to say, they protect the principal from being lost. 

While this is going on, your money may be placed in various stock and bond funds, giving you the opportunity for higher returns throughout a more extended period.

Example of Variable Annuity

One example is certain: variable annuities’ guaranteed minimum withdrawal benefit (GMWB). Consumers can withdraw the amount of money they have invested thanks to this function, even if the funds in their investment accounts have decreased. These withdrawals may need to be staggered over several years.

Bottom Line 

It is expected that you will be required to pay a fee to the insurance provider to receive the guarantee. 

On the other hand, such a guarantee may instill in you the self-assurance necessary to put your money into stock funds, where returns have historically been higher than those on cash or bonds over periods of 10 years or more.

Contact Information:
Email: [email protected]
Phone: 9143022300

Bio:
My name is Kevin Wirth and I have worked in the financial services industry for many years and I specialize in life insurance and retirement planning for individuals and small business owners, with a specialty in working with Federal Employees. I am also AHIP certified to work with individuals on their Medicare planning. You can contact me by e-mail or phone. I look forward to the opportunity of working with you on these most relevant areas of financial [email protected] 914-302-2300