Many people have realized over the past few years that they don’t nearly have enough money to live out their retirement. During and after the financial crisis people were not only hit hard losing some of the investments and savings, they also took stock of what was there and were shocked at how far it would take them. In “Annuities Can Help Provide Income in Retirement,” a US Insurance editor talks about how important annuities are in a retirement plan. Company retirement plans and other sources of retirement income should also be used, but annuities work best for a steady stream of income that can last over one’s lifetime. Many investors use 401k annuities which are purchased from insurance companies using part of one’s 401k savings. This is an important way to use part of your earned money to fund your basic expenses throughout retirement.
Eric Henderson of Nationwide Financial states in the article that any old annuity won’t do for everyone. He explains how crucial it is to get a product that is customized for your individual needs. While a guaranteed income stream throughout retirement is the main goal, advisors also want their clients to have an increasing control over their financial investments and their future income. He recommends a fixed immediate annuity to help investors remain in partial control. The author also points to the importance of spreading your money over multiple investments that will be used for different expenses. Compare equity linked CDs and IRAs when looking into investment income to supplement your annuity purchase. Annuities and these other products can work together to provide you the most comfortable retirement.