The topic is Annuities.
This training video covers the two categories of annuities available today, and gives you some good consideration points when choosing the right annuity vehicle to fit your retirement strategy.
If you're not clear on what an annuity is, let's get that defined here: an annuity in it's simplest form, is a written contract typically between you and a life insurance company in which the insurance company makes a series of regularly spaced payments to you in return for a premium or premiums you have paid.
- Income source
Annuities are a common source of retirement income, especially for people whose employers don't offer pensions. - Guaranteed income
Annuities can provide a guaranteed income for life, or for a set number of years. - Death benefit
Most annuities include a death benefit that protects your original investment for your beneficiaries (as long as you have not reduced your original investment amount through early withdrawals). - Tax-deferred earnings
Annuity earnings grow tax-deferred until you withdraw funds.
An annuity is not life insurance. A life insurance policy provides benefits to your family if you die. An annuity, in it's simplest form, pays you regular payments at the point you choose to begin receiving payments - the payout phase.
An annuity has two phases, the accumulation phase (when money is going into the policy from premium payments and earnings/interest), and the payout phase (when you start taking money out of your account).
The above is a very simple explanation, but just like different types of life insurance policies, there exists a wide variety of annuities, including annuities that combine both payments and benefits for your family if you die.
This training covers some types of annuities so that you are aware of what is currently available, and which might be a good fit for you and your goals in retirement.
Your next steps after watching this video is to see some different scenarios for your own personal financial situation, where you are currently at, and what your needs and goals are for the future so you have a good picture of what your future can look like. The best way to go about doing that is to schedule a 'Retirement Roadmap' meeting with me. Click the button below
