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Stock Photo | Photo by Lari Bat / iStock / Getty Images Plus, St. George News
CHARACTERISTIC –What happens if you live longer than expected? How do you make sure your funds last as long as you do?
iStock / Getty Images Plus, St. George News
Do you invest in stocks? Obligations ? Keep your money in the bank? Increasing life expectancy extends the time it takes to fund retirement, making our money last as long as we do has become the new “mantra†for baby boomers.
Many financial planners turn to products that eliminate the risk of longevity problem, allowing an insurance company to bear the longevity risk, annuity companies issue and manage annuity products.
Many types of annuity products are available, even those that pay interest (yield), which are similar in structure to bank CDs. However, the real benefit of annuities is the provision of income, income that can pay for any period, even a lifetime.
The question often asked is, “What happens to the money in an annuity if a person dies prematurely?” Does the annuity company keep the money? “
The answer is no; it’s an old wives’ tale that insurance companies profit from premature death. The unused portion of the annuity is simply refunded to the designated beneficiary. The funds are always accounted for, and that is the law.
Consider letting an insurance company be responsible for your large, secure and secure retirement income over the long term. Safety and security are their first objective.
One last tip: find the best rates. Rates can often be based on age, and there are many options.
Copyright © Lyle Boss, all rights reserved.
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