Baby Boomers are hitting retirement age. Many invest in annuities as creative ways to help solidify financial security in retirement, according to the New York Daily News.
What Are Annuities?
Annuities are financial contracts, usually sold by life insurance companies. The contract invests money in the stock market that you invest into it. In turn, the investment company contract pays you a stipend in a payment arrangement you and them have outlined.
Annities will provide guaranteed income based on the amount of money invested. The investment can be made either in installments or in a lump sum.
At least 70 percent of your current income will be needed to maintain your current standard of living while actively working, say Retirement planning experts. Thus, investing in annuities can help to solidify your financial security in retirement because they offer guaranteed income.
Annuities are low-risk investments, structured so you will enjoy financial security in retirement, according to the Daily News. In addition to annuities, life insurance companies can offer other kinds of security for breadwinners.
Term-life or whole-life insurance policies also provide financial stability for dependents in case of the unexpected. Or you can discuss annuities with a licensed life insurance agent.