Annuities In Frisco TX: The 3 Biggest Mistakes Retirees Make

Annuities In Frisco TX: The 3 Biggest Mistakes Retirees Make

Annuities Frisco TXWhen you’re thinking about saving or investing for retirement, you have a number of options.  One of those options – annuities in Frisco TX – are a great way of ensuring that you have a secure income stream in your golden years.  But because annuities are complex, and sometimes expensive, it’s best to take the time to sit down with a financial advisor to understand as much as you can about them.  Why is it important to work with a financial advisor who knows annuities?  Because there are some costly mistakes you can make when you attempt to invest in an annuity without guidance:

1.  Investing too much money in an annuity.

Annuities are a great source of income after you retire but they can be inflexible. If you choose to invest a lump sum in an immediate annuity – one that pays you an income right now – you can’t change your mind and take the money back.  You no longer have control over your own money.  You should plan to have money set aside or invested that you can use in an emergency without any kind of penalties.  That’s why annuities in Frisco TX should be part of your retirement plan, not all of it.  Annuities can be used to fill the financial gap between your expenses and how much you receive from your pension plan and Social Security.

2.  Choosing the wrong type of payout.

If you choose an immediate annuity, you’ll get the highest payout if you choose the single-life version that stops paying when you die.  But if you are married and your spouse will need the income from your annuity, you must choose a joint-life annuity even though the payout you get before you die will be lower.  

3.  Withdrawing too much money from an annuity.

If you have an immediate annuity, you will only receive a set amount of money per year; but with a deferred annuity, you can take out as much as you like per year.  While this sounds great because it means you’ll be able to withdraw extra money in an emergency, it means that your guaranteed income stream could be jeopardized.  Generally, if you take out more than 5% to 6% of the guaranteed value each year, you could see a substantial drop in the guaranteed value of your annuity, which translates to a reduction in the amount of money you receive per year. 

Annuities in Frisco TX are not for every investor.  As a financial advisor, I can fully explain the intricacies of annuities and whether or not they’re a good choice for you.  Call me, Jason Graziani, at (972) 992-1920 to make an appointment to discuss your financial future and the part annuities can play in it.  You can also visit me online at to find out more about the services I provide.

Jason Graziani
15150 Preston Road, Suite 300
Dallas, Texas 75248
(972) 992-1920

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