Do Annuities Make Sense

A fixed annuity makes sense depending on a persons situation.

Do annuities make sense. The rate of return you think you can get from safe non-annuity investments while you delay your annuity purchase and. For young people who have short term financial goals and not a lot of liquid assets an annuity doesnt make any sense at all. Consider the pros and cons of annuities here.

In such cases consider buying a variable annuity only if it makes sense because of the annuitys other features. According to the Centers for Disease Control people who were 65 years old in 2014 will likely live into their 80s. That is the answer still depends on.

After reaching 65 men can expect to live another 18 years and women an. Annuities have some unique features that other investments dont have the most important being that they can generate retirement income. And for those who think an annuity does make sense for part of their portfolio the same general analysis I provided for when to buy a lifetime annuity still applies.

Annuities do have the benefit of tax deferred growth. The same is true when the annuities are immediate versus deferred. But does it make any sense.

Read on for 5 things to consider doing if an annuity doesnt make sense for you. An annuity may not be the best fit for your retirement saving plan and thats okay. Annuities can be rather confusing but they can also be a great way for you to cover your retirement expenses.

That risk is the safety of the company itself although many insurance companies have been in business for decades and decades without any problems. Realize that if you are investing in a variable annuity through a tax-advantaged retirement plan such as a 401k plan or an Individual Retirement Account you will get no additional tax advantages from a variable annuity. Annuities also have the ability to build tax-deferred savings that offer some level of protection to the money in the annuity.