Till our early fifties we all have the ability to work hard enough to end up with a good life. What most people worry about are their lives after retirement. Not everyone is sure if the money they have saved up is enough to help them in living a good life even after retirement. Some people get pensions but at times your expenses might be more than the pension you’re getting. A safe way to enter your retirement days with the guarantee of all your expenses getting fulfilled is by investing. Investment Only Annuities lead the finest path to a comfortable and safe retired life. Read the following article to understand all about this idea.
Key Takeaways You Need to Know
The principle idea behind the concept of investment only annuities is a guaranteed rush of income that might be for a lifetime. The following points include a short summary of the whole investment idea.
- These annuities offer to the retiree investors a constant source of monthly or annual income often for as long as they live.
- In most of the cases these annuities need to be funded in advance. That means you need to provide the cash through a series of fixed payments starting off a few years before you reach your retirement age.
- Annuities are the best way for someone to gain extra cash after they are retired. But they are mostly viewed as having huge investment costs and penalties over early withdrawal.
The Major Benefits You Can Get
In case that you still have your mind bothered over the idea read below to know the benefits you could attain by trusting investment annuities.
- Lifelong Source of Income
The most obvious attraction you get from the idea is a secure and guaranteed income that you shall get till your death. This income ensures that you shall have something to add on to your Social security even if you live to be really really old. Traditional investment ideas did not offer such comfort.
- Tax Free Investment
Unlike other investments, these investments offer a cut off on tax. Unless you draw back on your funds you do not owe the government even a single penny. Adding money to a deferred annuity can even aid in reduction of your Social security taxes.
- Promised and Assured Rates
Variable annuities give you the cash based on the performance of the market. While for the fixed kind of annuity you do not need to worry about the condition of the market since you get what you were guaranteed.