News Financial Planning

Choosing a form of retirement income

Tweet

Different forms of retirement income are available to seniors, and each has its pros and cons, according to CBS Moneywatch. IRAs and 401(k) accounts are traditional supplements to social security benefits, as are the many different forms of annuities. Immediate annuities, or annuities that have no period of accumulation, are one option to note.

An important part of determining the right form of retirement coverage is establishing the required amount of generated income. Considering factors like the period of time the payout will be viable and the real-life applications of the funding is the best way to determine the total amount of coverage.

Immediate annuities have the advantage of lifelong payouts, though subscribers fund the risk of dying before they receive the total invested amount. Immediate annuities also risk penalties in the event of unscheduled withdrawals, so are best suited to financially stable people. In many cases, premature death means one loses whatever remains of an investment. In the case of a managed payout annuity, investors have a little more freedom, and can usually access funding in an emergency without a penalty, though overall yields may be lower.

According to the Insurance Information Institute, one of the best ways to defend against loss of funds in the event of premature death with an annuity is to purchase a guarantee period with the annuity. These contracts establish a period for which funds will be available regardless of whether or not a policy holder is alive. 

A few of the carriers we quote

For assistance call 1-800-823-4852 7am–6pm M–Th, 8am–5pm Friday (Pacific time).
Copyright © 2002-2012 Pinney Wholesale Insurance Services - All rights reserved. 2266 Lava Ridge Court, Roseville CA 95661.

R. Jan Pinney CLU, ChFC, is a licensed life insurance agent in all states and the District of Columbia. The following agent license numbers are provided for R. Jan Pinney as required by state law: CA agent #0440057, LA agent #291116, MA agent #1674866, MN agent #20270113, UT agent #58330, agent R. Jan Pinney, DBA Pinney Wholesale Insurance Services. Commercial use by others is prohibited by law. This site provides term quotes. Each rate shown is a quote based on information provided by the carrier. No portion of WholesaleInsurance.net may be copied, published, faxed, mailed or distributed in any manner for any purpose without prior written authorization of the owner.