ANNUITIES
If you’ve ever worried about outliving your retirement savings, you’re not alone.
A recent study found that 67 percent of Americans indicated they would be willing to give up smaller pay increases in exchange for steady and reliable income in retirement. In the same study, 78 percent said the disappearance of pensions has made it harder to achieve the American dream.1
With pension offerings on the decline, you may want to consider a fixed income component to your financial strategy. In short, adding an annuity may be an opportunity to help ensure a portion of your retirement income will be guaranteed.
WHAT IS AN ANNUITY?
An annuity is a contract you purchase from an insurance company. For the premium you pay, you receive certain fixed and/or variable interest crediting options able to compound tax deferred until withdrawn. When you are ready to receive income distributions, this vehicle offers a variety of guaranteed payout options — some even for life.
Most annuities have provisions that allow you to withdraw a percentage of the value of the contract each year up to a certain limit. However, withdrawals will reduce the contract value and the value of any protected benefits. Excess withdrawals above the restricted limit typically incur “surrender charges” within the first five to 15 years of the contract. Because annuities are designed as long-term retirement income vehicles, withdrawals made before age 59 ½ are subject to a 10 percent penalty fee, and all withdrawals may be subject to income taxes.
Have Questions for JP SANTANIELLO Retirement Planning Solutions?
It can be difficult to make financial decisions without access to information. If you have questions or concerns about your current retirement strategy, feel free to contact us using the form below.
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Phone: 413.505.4759
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Investment advisory and financial planning services offered through Simplicity Wealth, LLC, a SEC Registered Investment Adviser. Subadvisory services offered through Advisory Alpha, LLC, a SEC Registered Investment Adviser. Insurance, education and consulting services offered through DBA NAME. DBA NAME is a separated and non-affiliated entity from Simplicity Wealth, LLC and Advisory Alpha, LLC.