Tuesday, March 09, 2010
Common Annuity Concerns
Below are some most common disadvantages when purchasing a life annuity.
You lose control of your assets
You exchange control of your assets for a predictable and sustainable retirement income
An annuity is one part of a balanced financial plan, not the entire plan
Your locked-in for life
You can ladder their annuity purchases as they age and need to guarantee more of their income
When you die, your beneficiaries receive nothing
An annuity can be set up so if the annuitant dies before a pre-set date the beneficiary can receive income payments until that date
Refund options allow a beneficiary to receive the difference between the original premium and the payments already received either as a lump sum or as a continuation of the annuity payments
Low interest rates won’t generate a lot of income
An annuity can generate an attractive return and the older you are when you purchase an annuity, the more attractive the income
