is it possible to take a lump sum retirement payout and find an annuity product that would have better terms than my normal retirement benefit?
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Annuity
An annuity comes in many forms, but a simple definition is that an annuity is a contract that converts a sum of money into a series of periodic payments for an agreed upon period of time. An annuity can be thought of as a financial vehicle that converts a pool of money into a stream of income. Annuities are most useful in addressing the financial planning needs of people in or approaching retirement. Annuities are unique in the financial world because they can provide protection against the risk or outliving one’s assets (longevity risk) by guaranteeing income payments in perpetuity or any other selected amount of time. Annuities can be viewed as a type of personal pension plan. Social Security is similar to an annuity in that money contributed over the course of one’s working years is converted into a series of periodic payments that provide income during retirement.
What are some rules of thumb for fixed income ppl choosing between bonds and annuities with their lump sum retirement payouts?
This is a great question but it is difficult to answer briefly.
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I have heard that annuities are not good investments. How do I know if an annuity is right for my situation?
To begin with, while many annuities such as variable annuities have investment components, it might be useful to think of an annuity as an insurance product rather than an investment.
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I would like my parents to consider an annuity. How can I get them in touch with an experienced advisor?
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I am in my 30s -- is there any reason I would buy an annuity now? My advisor has suggested it.
There are many reasons to consider the purchase of an annuity. That said, many of these reasons would make sense for someone approaching or in their retirement years.
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