Long term annuities can be best or a big mistake depending on factors such as:
1. Your needs
2. Contractual Benefits
3. Exit Opportunities
Long Term Annuities Good or Bad? Pros and Cons of Annuities
The Pros and Cons of Annuities are not always apparent to those in Retirement. Every Annuity is just like a prescription from a Doctor. Each Annuity should be recommended based on the saver’s needs and not just to “sell them something”. An annuity might be good or bad for your needs depending on what your goals you have in your Retirement Planning Journey. Do you want to spend it all now or save some to pass on to your loved ones? An Annuity can be a safe option depending on your goals and challenges. Do you know your goals and challenges?
How Safe Are Annuities?
“Long term annuities at my age, do I need that?” One of the things I often read is “I can’t believe this person is 70 years old and they signed up for a 20-year annuity. They aren’t even gonna live that long!” Annuities are historical to provide lifetime benefits.
Whether your life is 60 years or 120 years, annuities are designed to give you a lifetime’s worth of benefits. If you’re signing up for an annuity your not signing up for it to make the most significant stock gains you can probably get. Your signing up for it to get a benefit or a bonus. If you’re close to your promotion or your next thing and you pass away a few years before you get all the benefits. They end up getting passed onto your heirs or the benefits you got up front you can keep those depending on what it is. You have to be careful because I am speaking in generalizations.
In general, annuities are as different as prescription drugs. You wouldn’t just go and pick up random prescriptions when you need a specific one. In general, the most extended term annuities you can get can give you the most significant benefits. Keep in mind everything we are doing here at FundMax is to your advantage for improving your retirement experience. The way we do that is by generally giving you answers to your questions and giving you feedback. I hope you provide us with feedback on how you are benefiting and share this with others!