As the Life spans of Americans have been increasing for due to better living and health, you need to plan for an additional 20 years of income after retirement. You should expect to reach retirement age, and to live 20 years or more, most of those years in good health. You never want to out live your assets; you want your assets to out live you. You want to have a steady income as long as you live and then leave a legacy for your children. Planning for retirement by utilizing annuities will achieve that financial goal. Annuities are a way to manage the risk of out living your assets!
Why should you diversify your investment portfolio? Investment experts routinely advise that, to get the best return for a given level of risk, you should diversify your investments among a number of asset classes. Fixed annuities, in particular, offer a unique asset classıan investment that is guaranteed not to decrease and that will actually increase at a specified interest rate (and, often, potentially more). The guarantees are supported by the claims-paying ability of the insurer.
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