Annuities as a Retirement Planning Tool
guaranteed income stream with annuities.
WHAT IS AN ANNUITY?
An annuity is a contract between an individual or married couple and an insurance company that promises to pay a stream of payments either now or in the future.
Annuities can be part of a comprehensive retirement plan and retirement income but should be evaluated carefully for appropriateness considering your individual financial situation, your age, long-term goals, risk aversion, and liquidity needs.
WHY HAVEN'T I HEARD ABOUT ANNUITIES FOR RETIREMENT PLANNING BEFORE NOW?
The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 allows 401k retirement plan providers to offer annuities as an investment option.
Participants can replace all or part of their 401k with an annuity, guaranteeing lifetime income and replicating the traditional pension plan*.