Lakewood Texas Insurance Agent Sam Morris discusses Income Annuities

Lakewood Texas Insurance Agent Sam Morris discusses how Income Annuities help build a Personal Pension.

Retirement Planning

The time has come for fixed income annuities to shine in the retirement marketplace.  Also known as immediate annuities when purchased with a lump sum at retirement, these products offer many of the same comforts and rewards that traditional pension plans do, such as consistent monthly income payments, guaranteed income for life, potentially more income than typical systematic withdrawals from saving, no hassle, and protection for loved ones.

• Some annuities also offer longevity insurance, to reinforce the retirement safety net.  One strategy used to help clients understand the benefits is to approach it like a do-it-yourself pension, their own guaranteed steady stream of income in retirement.  The good news is that there are several ways to obtain income annuities.
• The choices can include purchasing a deferred income annuity during the working years, using a lump sum distribution at retirement to purchase an immediate income annuity that starts right away.  Or you can purchase a deferred income annuity upon retirement that provides a future income stream starting at around age 85, or even earlier.
• Like traditional pension plans, a fixed income annuity provides guaranteed consistent payment that won’t change, even with fluctuations in the market.  This is a good way to fill in any gap in income between Social Security and Retirement benefits.
• Like a pension, an annuity can cover fixed monthly payments, but you should consider keeping some savings liquid for emergencies.  You may also want to keep other assets invested for growth to combat inflation.
• Longevity is a risk that all retirees face.  The average life expectancy for today’s 65 year old man is 82.2 years, and for a women it is 85.  Next week we will continue the discussion on how to use Income Annuities to help build a Personal Pension.

Lakewood Texas Insurance Agent Sam Morris has been providing Annuity products, along with residential property coverage, auto insurance coverage, disability income coverage, and general liability coverage to clients in Garland and East Dallas since 2000. Sam is a veteran of the armed services and makes it his personal mission to make sure that you have the right coverage… not too much nor too little. Please call 972-240-8075 today for a personal consultation with Sam.