Annuity Library

Have you heard about target date income planning? If you keep up with the latest developments in the financial world, you have probably heard some buzz about this powerful savings plan. On the other hand, if you don’t pay much attention to financial news, target date income planning strategies may be an entirely new subject. The term may sound complex, though in essence it refers to a straightforward method of assessing your financial needs after retirement and then creating a savings plan that will help you reach that goal by a particular date.

The term ‘principal protected annuities’ covers an important range of annuity types. These, as other annuities, are presented to the investor by a life insurance company and serve the investor as a form of retirement savings. Because of this specific intent, principal protected annuities, and other forms of retirement annuities, will be taxed when money is withdrawn or is otherwise used before the investor reaches the age of 60.

Principal protected annuities provide investors with a secure way to use their life savings to earn an increase with a bank or insurance company backed guarantee that none of the initial investment will be lost. In contrast to this, the stock market experiences ups and downs that can instantly make a millionaire of one person while simultaneously stripping another individual of their entire savings and investments.

During the past few years I am sure that it has been very difficult to open your 401 (K) and TSP statements that come in the mail. Just like some bills, you might leave these un-opened on the counter for as long as you possibly can before taking a look at the damage that has occurred to your money once again.

When a young adult begins to plan a budget for the first time, they commonly portion out their income into what is needed to buy groceries, gas, rent, utilities, and possibly to make a student loan payment or credit card payment. These are many of the fundamental categories that should be budgeted for each paycheck, but there is one important budget item missing from this list. Each young adult should be thinking about their retirement savings.

As you prepare for retirement, you are most likely thinking about the vacations you can take and the places that you want to go. You might enjoy the thought of sleeping in each morning and enjoying a cup of coffee with the paper before you head out to the golf course for the day. You have worked hard most of your life and you now feel that you can reward yourself and do just about whatever you might want without a time clock to punch in and out of.

It is a good idea to consider your plan for your retirement before it becomes too late. If you want to come to a point where you won’t have to work full time in order to have the money you need to live on, you will probably want to start planning early on. There are many different investment options, and you might hear a lot of different opinions.

Just as you have likely found with your other financial decisions, when considering the various income annuities available, what works for someone else might not be the best option for you. If you are trying to find a good place to secure your money and receive a regular stream of income, you might want to consider purchasing one of these income annuities. Here is a simple guide to help you decide which one might be right for you. You will always want to consult a professional before making any investment decisions.

Income annuities comprise an investment option that start providing income for the investor as soon as the annuity policy has been initiate. The use of the monthly income may begin immediately while the principal of the investment will be used in fixed, variable, or a combination of investments. Because the principal is ultimately affected by the flow of the stock market, the investor may find that the monthly income payments will change as time passes.

There are many people that want to take control of their financial futures and they invest wisely to make their hard earned money pay them back one day. Retirement is a major concern for people that aren’t sure whether or not Social Security is ever going to help. If you have been considering annuities then you may want to think about the many disadvantages of variable annuities that may hinder your financial future with investments. You may have never been told the truth about all the fees associated and what you will truly end up with when you retire so here are a few facts.