In the coming years more baby boomers will begin to retire, and for those who may be nearing retirement or even for individuals who are still well away from retirement age, the topic retirement plans has still been one which many are interested in due to the fact that there are a wide number of options available when it comes to investing and saving for retirement costs and needs. As an example, many individuals often invest in a 401(k) program but there are also options from IRAs and annuities that may bring more stability in the financial life of an investor during their retirement years.
Yet, some consumers feel that annuities may be one aspect of a retirement portfolio that should be used due to the fact that they can offer a lifetime payout and, essentially, this translates to an investor being able to rest on the fact that they will have an income from this particular type of retirement investment account. However, annuities can be quite complicated and may come with fees or other charges, but there are also some aspects of annuities that consumers must research before deciding on what particular product they choose for their specific needs for retirement.
While there are deferred annuities and immediate annuities, with both fixed and variable options within these types of retirement accounts, consumers are often advised to look at what their goals may be before opting for a particular annuity so that they can better explore specifically how this type of retirement investing could be helpful for their situation. Most advisers would recommend that consumers make sure they diversify their retirement portfolio, as there are more liberal and conservative investing options that can be taken advantage of throughout an investor’s career or even at particular points in their career, but most financial advisers would agree that putting all of one’s money into a set account may not be the best way to maximize one’s retirement investment returns.
When it comes to this particular type of retirement savings opportunity, some men and women feel that annuities, particularly variable annuities, can be helpful for certain men and women due to the fact that they can offer income for the life of the investor, and while the amount that a consumer will be able to withdraw each year from their annuity will depend on the type and contributions they make, many believe that in cases where a lifelong withdrawal is an option, these annuities can be helpful and offer more security.
However, there are those who argue that there are excessive fees or charges, not to mention complicated processes that may come from certain annuity products, which must be taken into account by an investor. Obviously, if there is an annual fee or other costs that may eat into an investor’s retirement savings, it will be beneficial to explore and research other options from insurers to make sure that the best annuity is selected. Investors must remember though, there are a wide range of retirement products that can be used to diversify a consumer’s portfolio, and while there are some men and women who simply rely on one option, like a 401(k), with proper research, planning, and investing, annuities have been one way to guarantee income for a lifetime, but for some investors, the costs of this particular type of retirement option may simply be outweighing the benefits some investors stand to gain.