With all of the tools available for planning for retirement, sometimes it’s hard to tell what’s what. For some, the retirement toolkit includes annuities and individual retirement accounts (IRAs). But the question arises: is an annuity an IRA, or are they separate tools? And does it even make sense to combine them? Is an Annuity […]
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Types of Annuities
As you plan for retirement, you might look at annuities as a way to help you build up your savings and provide lifetime income. But there are a number of different types of annuities. What’s the difference, and why should you care? Each different type of annuity offers different benefits, but you generally have to […]
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What to do with Your 401(k) at Retirement
So, the day has finally come for you to call it quits. What should you do with your 401(k) at retirement? Most people don’t know because they spent years and years building up their 401(k) accounts, but the focus was on accumulation (not on using the money). They’re like climbers at the summit of Mount […]
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Types of Investments
There are a number of different types of investments you can use to grow your money. Some of them are useful for general goals, while others serve very specific purposes. As you work towards your goals, it’s helpful to know what the different types of investments are, and when each one might be useful. Let’s […]
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What Is a Fixed Annuity?
Fixed annuities are conservative investments. They are typically used for retirement planning, and they might also be used strictly for their tax benefits. You can use them to accumulate money, or to take income from your assets once you retire. They are very appealing to people who don’t want to lose money in the markets, […]
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Lifetime Annuities – What You Need to Know
With a lifetime annuity, you receive payments from an insurance company for the rest of your life. These programs are increasingly popular for retirement planning, and there are even proposals before Congress that would require employers to provide lifetime annuities to retiring workers. Let’s review how they work along with the pros and cons. The […]
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Annuities: Pros and Cons
Annuities have become a popular retirement planning tool, especially as a result of fewer pension plans for retirees. If you’re thinking of using one, make sure that you clearly understand the pros and cons of annuities before you do anything. Annuities can certainly be helpful tools, but most people who are interested in annuities focus […]
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Longevity Risk – What it is, and how to Manage It
Longevity risk is one of the risks you face when saving for retirement. Simply put, it is the risk that your retirement savings will not last for your entire lifetime. A few other ways to refer to longevity risk include: You’ll outlive your savings You’ll run out of money before you run out of life […]
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Death Benefits – Annuity Guarantees
Annuity death benefits are promises to pay something to your beneficiaries. When you invest in an annuity, the account value may decline if the investments inside lose value. What happens if you die while the account value is down? It depends on what type of death benefit the annuity offers. Note: this is part of […]
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Minimum Withdrawal Benefits – Annuity Guarantees
Minimum guaranteed withdrawal benefits guarantee that you can take a certain amount from your annuity over time. Your assets may be invested in the markets, giving you the potential for market-like gains and losses, and you do not have to irrevocably give up control of your money. Even if your investments lose money and your […]