Life Insurance Quotes

Annuities a safe way to plan for retirement

01/24/12

According to the website RTTNews, annuities can be a safe way to invest money if retirement is in the near future.

Annuities are products sold by financial institutions designed to grow funds from an individual that will be paid in regular installments upon annuitization, the source stated.

Americans who are retired or facing retirement in the near future are looking at annuities as one of the safest ways to invest their money, along with other forms of life insurance.

"I think if you really look at it, those investments are safe money investments," Rob Kirvan, president of Kirvan Financial, said to RTTNews. "You cannot lose one penny of principal, so when you're looking at it from that perspective and you're gaining a 4 to 6 percent return, I think they're very valuable to have as part of a portfolio for sure."

With annuities, investments are supported by policy holder reserves, meaning every dollar of principal a financial institution collects via annuities must have a reserve requirement. This reserve - for example, five cents on the dollar - enables the lender to guarantee the principal.

The expected retirement age is increasing among American workers, according to a recent report from the University of Michigan's Health and Retirement Study. The study found the percentage of workers 50 or older planning to retire by the age of 62 fell from 7 percent in 2006 to 5 percent in 2010.

Talk to an Advisor

A licensed insurance advisor can explain your options and help you choose the right life insurance for your needs.

Call: 1-800-823-4852

Chat: Live Advisor Chat

Sm

A few of the carriers we quote