What is an Annuity and how can it help you pay for retirement? Annuity definition plus five ways to close the income gap and pay for retirement.
We talked about that retirement income gap last week and the $30,000 hole in most retirees budget after social security. This week, we’re talking about the solution. I’ll explain annuities and how these investments can guarantee income in retirement. I’ll also share five other ways to help pay the bills in your golden years.
See how easy it is to guarantee income in retirement with AgeUp and a deferred annuity. Use the free retirement income calculator and find your number in less than a minute.
An annuity is an investment sold by an insurance company to guarantee income for the rest of your life. You can buy into an annuity with a one-time payment or over years. Your monthly income from the annuity is a fixed amount and can start immediately or at a date in the future.
Annuities work through the insurance company investing your money at a safe rate to guarantee that level of income in the future. While the rate of return is usually low, it’s guaranteed because it’s backed by the insurance company.
Pros of annuities are that guarantee and the confidence you’ll have money to pay the bills in retirement. Cons are the lower return compared to other investments and the high cost of most annuities. AgeUp is a twist on the traditional deferred annuity though and can make these income streams affordable for everyone.
I’ll walk you through the annuity definition, show you the different types of annuities and how to calculate how much an annuity pays. I’ll then show you five more ways to close that income gap in retirement.
1:48 What is an Annuity?
2:08 Difference between Immediate and Deferred Annuity
2:59 Pros and Cons of an Annuity
5:35 How Much Does an Annuity Pay?
7:30 5 Ways to Pay for Retirement
Join the conversation in our private Facebook Group!
Join the Let’s Talk Money community on Instagram!
SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you.
Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
#retirement #annuity #income…(read more)
LEARN MORE ABOUT: Retirement Annuities
REVEALED: How To Invest During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Thinking Social Security is going to pay for your retirement…think again. Here's how much you'll get and why it's NOT enough! https://youtu.be/WLnqqo4-tyA
There is a type of insurance that became illegal for some reason.
If a # of people put in some amount and then the people still living would get the income every year.
The amount paid out could be front loaded a bit because.
1) people die eventually every year.
2) There is the capital that would exist when the last person would die. Instead the capital could be paid out early gradually based on life expectancy charts.
3) The payout could start after you are a certain age.
Can I invest in Ageup?
That seems like a better investment.
Do you think policies have an affect on the economy ?
I like the black bow tie today!
Hope you’re well Marine!
A question I’m trying to find the answer to…
I bought into a company (NAT) that is supposed to be a short term investment.
Is there a way to create different portfolios (IRAs or something) that can help me to “legally” pay less short term capital gains?
For example
I hear stories of people who make lots of short term money that try to work around being stuck with that 24%, 32%, 35% or even 37% tax based off the brackets of income.
Go listen to the money guy show instead
Don’t listen to those clown
Age-up isn't available in New York
This…. is pointless.
Did something happen to your FB group =( ??? Cant find it in groups. I was part of it. Dont break rules either. Thanks
I have a question! Can the company you work and is matching your 401k, withhold their paid part if you leave early or attempt to retire early?
91 is way too late. If the investor retires at 63 you would have to wait/pay for 28 years before seeing anything… If they had an earlier option then it would be OK but a minimum of 91 is too much of a gamble and by that time you will likely be in a retirement home anyways.
That age up annuity sponsor seems odd because you can only cash out when they reach 90-100, but the average life expectancy in the US is 79.