Should An Annuity Be Part Of Your Income Strategy? | SafeMon

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Explore how annuities can enhance your income strategy for retirement. Learn more about guaranteed solutions today! Visit SafeMoney.com. Record numbers of Americans are retiring. According to the U.S. Census Bureau, there will be over 80 million retirees by 2040. Life expectancies are on the rise – people are living longer. And a large proportion of Americans worry about market risk. They get anxious over how the stock market performs or fear potential losses. Because of these and other reasons, some Americans have been adopting annuities as transfer-of-risk strategies. They want the guarantees associated with these contracts – particularly the assurance of lifelong income , for many annuity buyers. For those of us worried about outliving our money or other income-related risks in retirement, this raises an important question: “Should an annuity be part of my income strategy?” It’s indisputable that many Americans desire guarantees in their financial plan , and this number continues to grow. But that doesn’t mean annuities are right for everybody. If you are wondering whether an annuity is for you, here’s a quick look at some situations you may want to consider. Situations for Judging annuity Suitability Remember, any financial strategy depends on your personal needs and situation. Whatever annuity you may be considering, it must fit well into the scope of your plan. And it should be only part of an overall retirement strategy. With that said, let’s get more into situations where annuities may be a worthy option. Countering risks with annuity guarantees. Annuities are designed to be transfer-of-risk solutions. They can solve or ease a variety of risks, including: Retirement lifetime income Protection of savings against market downfalls Enhanced income for specialized care or confinement needs Legacy planning when someone can’t pass underwriting process for life insurance At SafeMoney.com, we believe one of the most appropriate uses for an annuity is for risk transfer. Of course, these contractual guarantees aren’t universally suitable. Everyone has differing levels of risk tolerance . Some people may prefer to leave monies in more aggressive vehicles, such as stocks or bonds. Or their circumstances may be outside these risk scenarios where annuities can be valuable. J