No longer is retirement straightforward. Gone are the days of guaranteed pensions and being able to depend on Social Security benefits. Add in stock market volatility and it’s no wonder why many soon-to-be retirees feel anxious about their financial future.
If only there was a way to receive regular, supplemental income during your golden years. Well, you’re in luck! A lifetime income annuity can provide a guaranteed stream of income that lasts a lifetime and is not vulnerable to the roller coaster that is the stock market.
Keep reading as we take a closer look at lifetime annuities and what specifically these investments can do for you.
What to Know About Lifetime Annuities
Even some of the most financially savvy investors have trouble understanding annuities. That’s why we’ve made a concerted effort to discuss the ins and outs of lifetime annuities in recent posts. Basically, a lifetime income annuity can hedge against market swings, provide guaranteed income for life, and even help diversify your income sources.
So how does this investment work? Here’s the deal: A lifetime annuity represents a contract with an insurance company whose purpose is to convert a portion of your savings into a predictable lifetime income stream. In return for this lump sum investment, the company guarantees to pay you a set amount of income for life.
It seems pretty straightforward, right? What investors often fail to realize, though, is that not all lifetime income annuities are the same. For example, some might provide higher levels of income with minimal flexibility in accessing assets while others may do the opposite.
That’s why it’s so important to understand the difference between a fixed lifetime income annuity and a fixed annuity with guaranteed lifetime withdrawal benefits.
What Are Fixed Income Annuities?
More retirees are gravitating to these annuities than ever before because they offer lifetime income. With life expectancy continuing to rise, the possibility of outliving your assets certainly comes into play. Fortunately, a fixed income annuity allows you to receive a guaranteed stream of income beginning on the date you choose.
Lifetime income isn’t the one benefit of these annuities. You also have the option to purchase additional features for the protection of any beneficiaries. Not only that, but you can add a yearly payment increase to help your payment remain aligned with inflation.
Fixed Annuities With a Guaranteed Lifetime Withdrawal Benefit
Similar to fixed income annuities, this type of annuity also guarantees lifetime income. There is one key difference, though. If something happens and you need your money sooner, you have access to what’s known as Accumulation Value in your contract.
Our Risk-Averse High Return Investments
Now that you have a better understanding of fixed income annuities, it’s time to address the million dollar question. Are lifetime annuities right for you? In short, if you’re looking for stable, consistent income without having to worry about outliving savings accounts, then it probably makes sense to explore this financial vehicle.
We often tell investors to think of the Tactical Wealth Fixed Income Fund as a lifetime annuity. Today, our 30-year note offers an unmatched rate of return at 5.75 percent. With the Fixed Income Fund, you are able to receive more money for longer.
Here at Tactical Wealth, we pride ourselves on delivering steady, monthly income. What really sets us apart from traditional financial institutions is that we are fully transparent. Our team understands how hard you worked to build your wealth, which is why we go above and beyond to earn your business.
For this reason, we do not charge investor fees. Should you have questions about our fund, ask us and we will answer them in a way that’s easy to understand.
So if you’re seriously considering fixed income annuities and other high return investments as you move toward retirement, we encourage you to learn more about Tactical Wealth. Our fund generates stable income by issuing or purchasing mortgage and trust deed loans according to strict underwriting criteria with a maximum Loan-to-Value ratio of 70 percent.