Dreaming of retiring is something we all do, and with the help of financial tools like annuities Frisco TX, the dream can become a reality. If you’ve read about or heard about annuities from friends or a financial planner, then you know that they can help you to retire with a guaranteed source of income that you can never outlive; but there are two important things about annuities that you need to know before you take the plunge:
1. Annuities Frisco TX: Annuities Are Complicated
On the surface, annuities seem pretty straightforward. You give a lump sum of money to an insurance company and when you retire, they send you regular payments in return for the rest of your life. Unfortunately, there are a host of variations on this seemingly simple product. You can choose a deferred annuity, in which you make small payments over a number of years, to build up a savings. When you retire, the insurance company reverses the process and makes payments to you. Or you can purchase an annuity that’s tied to the volatility of the stock market, which means your payments can go up or down depending on which investments the insurance company makes with your money. In addition, there are death benefits, spousal benefits and a variety of other features to think about.
2. Annuities Frisco TX: Annuities Can Be Risky
In general, annuity payments are not tied to inflation, so the comfortable amount you receive the year after you retire may not be enough to make ends meet 20 years into your retirement. Also, if the insurance company you purchased goes bankrupt, you could lose your entire investment because annuities are usually not backed by government insurance. Many annuities come with hidden fees that your insurance company likely won’t itemize, but you’ll know you’re paying them because your monthly payment will be lower than what you might get from another type of retirement investment. These fees can include mortality and expense charges, surrender charges and management fees, among others.
If you’re interested in adding one to your portfolio, get the help of a financial planner who can help you to choose the right product for you. Both fixed and variable annuities can provide guaranteed income for retirement, but neither will be perfect for every investor. A financial planner can explain important factors like income guarantees, flexibility, longevity and cost that will determine the right investment for you.
Call Jason Graziani for Help With all Your Financial Planning Needs
As a certified financial planner, Jason Graziani can help you learn more about annuities Frisco TX so that you can stop dreaming about retirement and start planning for it. Call Jason Graziani at (972) 992-1920 or visit www.jasongraziani.com to find out more.
Annuities Frisco TX
15150 Preston Road, Suite 300
Dallas, Texas 75248
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