Retirees
Turn to Annuities for Retirement Planning
Annuities
give investors the security and income needed for a worry-free retirement.
(PRWEB
via PR Web Direct) November 17, 2005 – With the future of Social
Security unclear, annuities can provide the income and security
needed for retirement planning.
Statistics
show nearly half of all retirees are unable to meet their regular
expenses. Those with incomes in the bottom 20 percent rely on Social
Security for 80 percent or more of their annual income. With the
future of Social Security under constant scrutiny, the development
of a personal retirement planning strategy is essential.
“In
order to accommodate long-term retirement income needs, people today
must include a personal savings plan to supplement Social Security
and earnings-based retirement plans,” says Ken Nuss, founder of
AnnuityAdvantage.com.
According
to Nuss, “In today’s financial world, annuities can provide a sensible
solution for a protected, competitive return on a principal-protected
investment at any stage in the retirement planning cycle.”
Annuities,
investment products offered by insurance companies, have the added
benefit of tax-deferral, and are typically guaranteed (to certain
limits) by State Guaranty Associations.
Harry
Donovan, a 30-year annuities investor, has long relied on the security
his annuity investments have provided.
“Every
day you hear of companies filing for bankruptcy or falsifying reports,”
says Donovan. “I find great comfort in knowing my retirement funds
are safely invested in annuities.”
For
a typical member of the so-called baby boom generation, the average
$1,300 they have accumulated in their personal savings plan can
evaporate before the first month of retirement ends. Most widely
used investment options carry a risk factor far too high for soon-to-be
retirees, while volatile market conditions have put an end to the
soaring returns seen just a few years ago.
The
wide varieties of annuity options which can be customized to fit
the needs of a particular investor include:
• Fixed - allows for compounding interest to accumulate tax-deferred
over a period of time with a guaranteed rate of return
• Immediate - creates a guaranteed monthly stream of income
• Equity-Indexed - provides the increased interest potential of
a market investment without the market risk
“As
we approach retirement, it is important to decrease the risk associated
with our investments,” says Kathleen Cohan, a former day trading
professional and contributing financial reporter. “Those considering
an annuity investment should seek the advice of an Annuity Specialist,
who can help guide people through the web of detailed contracts
to find the best annuities for their individual needs.”
About
AnnuityAdvantage.com (www.annuityadvantage.com)
AnnuityAdvantage.com is a one-stop, online annuity shopping service
that provides individualized recommendations and guaranteed high-value
fixed-rate annuity products. The company’s focus on annuities enables
its staff to sort through the array of options and custom-tailor
product offerings to people for their retirement
planning needs.
