• Question
  • Annuity a good idea?

    Asked on 6/1/2012

    Should I put my money in an annuity? (is it worth it?)

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  • Categories: How to Choose, Annuities

Answers

  • Editorial 


    NewRetirement

    San Francisco, CA

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  • Lifetime Annuities -- different from term and other kinds of annuities -- can be a really great way to guarantee income in retirement.

    A lifetime annuity guarantees a certain amount of monthly income for as long as you live -- no matter how long that might be. Most financial planners recommend that retirees guarantee enough income to cover their basic -- most important -- expenses. Social Security and some pensions are guaranteed lifetime income. If your income from these sources is not enough to cover your necessities, then a lifetime annuity is probably a good idea.

    We hope that you were able to review some of the analysis in the New Retirement Calculator.

    The "What You Need" chart may have helped answer your question about putting money into an annuity:
    http://www.newretirement.com/retirement-calculator/what-you-need.aspx

    Also the "Out of Money" chart:
    http://www.newretirement.com/retirement-calculator/out-of-money.aspx

    Most importantly, were you able to find the Annuity Marketplace in the Retirement Calculator?
    http://www.newretirement.com/retirement-calculator/annuity-marketplace.aspx

    This page can give you instant estimates for how much monthly annuitized income you can receive with your savings. As well as help you find insurers for this product. Before buying an annuity you will want to carefully assess different companies and the various options you can choose for your annuity.

    Do you want an Annuity with:
    Premium protection? A feature that guarantees you receive back at least as much money as you originally invested.

    Cost of Living Protection? This guarantees that your income stream will grow with inflation.

    Joint and Survivor Benefits: Do you want your spouse or other dependents covered?
    Etc...


  • Login to rate this answer:   Answered on 6/1/2012
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  • A lot depends on you age and what you want it to do. Do you want safety, immediate income or future income?

  • Login to rate this answer:   Answered on 6/8/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.