Interested in learning more about annuities?
They are often retirement’s superior solution!
The annuities of today are not those of your great grandma’s. Today’s annuities, offered only by insurance companies, are the only companies you should place your trust in for guaranteed lifetime income! Why? Insurance companies are the only companies that can guarantee lifetime income insurance contracts. Therefore, annuities can often be the superior solution for many people approaching retirement or already in their retirement years. Why is it that only insurance companies can provide guaranteed lifetime income no matter how long you live? It’s because insurance companies are experts at analyzing risk, reserving against risk, spreading the risk, and ultimately creating mortality credits for their clients. Mortality credits make annuities a superior choice by providing higher guaranteed lifetime payouts than CD’s, investments and any other investment option available. Income taxes too, verses other financial accounts, can sometimes be reduced for those receiving income payments from their annuity.
Why do annuities do so well paying out high guaranteed lifetime incomes? It’s the mortality credits! What are mortality credits? Mortality credits, also known as mortality yield, are premiums paid by those who die earlier that contribute to gains of the overall money pool of people that live longer, thus providing a higher yield or credit to survivors than can be achieved through individual investments outside of the pool. Another way to look at mortality credits, is to think about your individual pile of money and try to calculate the lifetime optimal withdraw amount you can take from your savings or investment money. What is your answer? The answer is that you would have to be extra conservative to ensure you don’t run out of money before you die, in the event you live a longer time and still you cannot optimize your withdraws. You can only figure your guaranteed maximum optimal withdraw rate from your savings and investments if you know exactly when you will die.
Today’s annuity contracts can be structured so to provide for guaranteed payback of all amounts contributed should you start a lifetime income and then die sooner. Additionally, should you die first, you can help guarantee that your spouse or other loved ones have continued lifetime income through using modern annuities. Many of our clients love their annuities as a guaranteed accumulation account too! It is nice to know that as an accumulation financial tool you will earn an attractive growth rate where gains can be tax deferred for a long time. It is important to point out that annuities pass via beneficiary and bypass the probate process. Lastly, I will point out that in most states, annuity contracts are a protected asset in that your money is sheltered against lawsuits and creditors.
Used properly in financial gerontology planning, today’s annuities can place certainly in the unknown of how long does my money have to last. After all, no one wants to outlive their money! Go ahead, give yourself a guaranteed lifetime paycheck, and if you want, add a lifetime play check or two as well.
Galvin Agency is more than happy to further discuss annuities or any other insurance questions you may have. We really appreciate your feedback on these newsletters, so please send us any information that you would like us to include in our next newsletter. We love hearing and sharing your good news!
Did you Know?
We offer a wide variety of insurance products to include Home, Auto, Life, Annuities, Motorcycle, RV, ATV, Boat, Small Business, Rental, Umbrella, and Equine Mortality/Major Medical coverage.
Galvin Agency is here to help you with insurance questions, needs, and claims. We are here to assist you and our job is to make sure you feel protected and knowledgeable. Thank you for your business and we look forward to talking with you soon!
