Annuities and Your Retirement

Annuities and your retirement may sound like a mismatch but the truth is an annuity is the only product available that will pay a monthly check for life. No other investment vehicle can make this guarantee.

Before I launch into an explanation on annuities I need to make a disclosure. I own an insurance agency in Northern Nevada and sell annuities. I also own www.nevada-annuities.com, a site devoted to annuities.

The purpose of this article is to piggyback on the advice of financial gurus who advise their clients to consider an annuity in their retirement portfolio. I obviously agree with that advice given what I wrote in the opening paragraph.

I agree with it because an annuity provides income you cannot outlive. This is super important. No one wants to be 80 or 90 years old without an income or with an inadequate income. They simply cannot start their work life over.

Even the U.S. Department of Labor in their various pamphlets on retirement and investments advises people financial secuirty and knowledge go hand in hand. Knowledge about annuities is easy to obtain. Even a cursory search on any search engine will result in a plethora of information.

My bias says to click on my site so you can find all of your annuity information in one central location. Before you click away from this article here is some basic annuity information.

An annuity is nothing more than a contract between you and an insurance company under which you pay them a sum of money either in a lump sum or over a period of time and at a point of time in the future the insurance company starts paying you. It is that simple.

If you can understand that definition you know why an annuity is a very good retirement product. You also know how the insurance company can pay you a check for your lifetime.

They have invested your money over a period of time and earned interest and other revenue which they now use to return to you in the form of a monthly check. Depending on the type of annuity you purchase, you can even have it indexed for inflation.

This means your retirement check will increase if inflation occurs while you are receiving your monthly check. This is a good thing to have happen. Not only will you not run out of money but your check will grow.