In this video, I will share 6 crucial aspects your retirement plan needs to consider PRIOR to buying an annuity in order to make sure the annuity is used properly and so you buy the right kind of annuity for your needs.

There are many different kinds of annuities, YET what most planners and people fail to understand is the strategy (or the overall retirement plan) plays the major role in dictating the type of annuity.

Before you ever purchase an annuity, the total plan and strategy needs to be clear so the goals and objectives are solved by both the strategy and the type of annuity RATHER than just trying to find the highest rate or perceivable best riders.

Get my webinar replay that teaches my “Retirement Income Accelerator System” and find out more about some of the strategies I mention on this video –

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The overall financial strategy can often times better maximize the annuity’s benefits rather than just the “bells and whistles” that are often sold by reps that are seldomly used. Once you know how to implement the best strategy for you and then how to best utilize the annuity within that strategy, you can effectively choose the right annuity for you….(read more)

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Retirement planning is an essential part of everyone’s financial planning journey, especially as we begin to age. One way to prepare for retirement is through annuity retirement planning. Annuities are financial products that provide a steady stream of income in retirement in exchange for a lump sum payment or periodic contributions. However, before creating an annuity retirement plan and buying, there are six crucial aspects to consider:

1. Type Of Annuity

There are different types of annuities, including fixed annuities, indexed annuities, and variable annuities. Fixed annuities offer a guaranteed rate of interest and a fixed income payment. Indexed annuities provide returns tied to a particular benchmark index. Variable annuities offer investment options and have returns tied to market performance. It’s essential to understand the different types of annuities and choose the best for your retirement goals.

2. Your Retirement Goals

Before purchasing an annuity, consider your retirement goals, potential expenses, and lifestyle. Calculate how much monthly or yearly income you’ll need during retirement and ensure that the annuity you select can provide that amount. If you have high medical expenses, consider an annuity with long-term care benefits.

3. Financial Strength of the Annuity Provider

The strength of the provider of your annuity is critical. A financially stable provider with positive track records can offer the assurance of guaranteed payments for the life of the investment. Consider checking the provider’s financial rating from reputable rating agencies.

4. Tax Implications

Annuities can be tax-deferred, meaning you pay zero taxes until funds are withdrawn in retirement. Understanding the tax implications of different annuities can be beneficial when calculating your retirement income.

5. Crediting Method

The crediting method determines the amount of return an annuity provides. Some annuities have a fixed interest rate, while others offer returns linked to the stock market. Knowing the crediting method of an annuity can help you determine your expected return.

6. Surrender Charges

A surrender charge is a penalty for withdrawing money from an annuity before the end of the term. Consider the surrender charges of an annuity before buying. If you expect to need the funds before the term ends, an annuity with a low or zero surrender charge may be a better option.

In conclusion, annuity retirement planning can be an essential tool for securing financial security during retirement. However, before creating an annuity retirement plan and buying, consider the type of annuity, financial strength of the provider, tax implications, crediting method, and surrender charges. With these six aspects, you can make an informed decision that aligns with your retirement goals.