Avoidance is the Enemy When Planning For Your Future
*Information for this post is sourced from Genworth Financial all opinions are mine.*
Avoidance is the Enemy
With the holidays upon us wouldn’t it be a great idea to face avoidance of planning your future? What a gift it could be to you and your spouse, your children or those that you are close to. Planning now helps secure your future without burdening other family members when you can’t make ends meet.
In this day and age many people haven’t prepared for their future, much less retirement. Many have avoided it due to thinking, “I have a long time until I am going to retire”, or “I am never going to be able to retire, I will have to work until I am 80 (or longer). What if you could have Guaranteed Income — for Life ? One way to do this is to work longer, or you can scale back on significantly on your lifestyle in retirement and make do with less. Another solution? Consider supplementing your retirement savings portfolio with an annuity.
Definition of an Annuity:
The definition of an annuity is:
- a fixed sum of money paid to someone each year, typically for the rest of their life.
- a form of insurance or investment entitling the investor to a series of annual sums.
Types of Annuities:
There are two types of annuities: deferred and immediate.
With a deferred annuity, your money is invested for a certain period of time until you are ready to begin taking withdrawals, typically in retirement to use for living expenses.
If you choose an immediate annuity, you begin to receive payments soon after you make your initial investment. For example, you might consider purchasing an immediate annuity as you approach retirement age.
The deferred annuity accumulates money while the immediate annuity pays out. Deferred annuities can also be converted into immediate annuities when the owner wants to start collecting payments.
Inside of these two categories, annuities can also be either fixed or variable which depends on whether the payout is a fixed sum, tied to the performance of the overall market or group of investments, or a combination of the two.
Don’t be like the people on the left above by avoiding planning for the future. Be the couple on the right who can enjoy their holidays knowing their future is all taken care of.
Wife, mother, grandma, blogger, all wrapped into one person, although it does not define her these are roles that are important to her. From empty nesters to living with our oldest and 2 grandchildren while our house is rebuilt after a house fire in 10/2018 my life is something new each day.