Are Income Annuities Guaranteed?
If you are approaching the retirement age, an annuity may be one investment option that you are considering. An annuity is a great option if you are seeking a guaranteed benefit for the rest of your life – regardless of how long you live.
In short, an annuity can be seen as a contract signed between you and the company guaranteeing the annuity, such as Safe Money CLA. You would provide a lump-sum payment or series of premium payments, while receiving a regular, reliable income stream. This income stream is provided for either a set amount of time or the rest of your life, depending on the annuity. This benefit is guaranteed for the life span of the annuity.
A major benefit to fixed annuities is that the investment risk is shifted from you to the guarantor of the annuity. As you get older, a major downturn in the market at the wrong time can be disastrous to your portfolio, but that is largely a risk of the past if you are receiving payments from an annuity, which guarantee payment no matter how the market performs.
Another option is an index annuity, which offers you upside growth potential when the market goes up, and protects your principal when the market goes down. This can give you upside to go along with the security and guarantees that an annuity can provide.
Annuities can help hedge against market risk as you reach retirement, with a guaranteed stream of income that will last the rest of your life. Contact a qualified financial professional in Dallas to find the right fit for your financial situation.