Don't overlook the benefits that annuities can provide during your retirement planning years. Yes, there are lots of misconceptions out there about annuities that may make them sound like a lousy choice, but there are plenty of reasons to trust in financial insight from a professional rather than the Google results on the Internet.

It's also important to understand that there are different types of annuities which work differently, and you'll want to make sure you understand what you are getting - and whether an annuity is right for you - before you purchase an annuity. 

Here’s some reasoning behind why you may want to consider an annuity:

1. Building wealth for retirement. If your contributions to an employer-sponsored savings plan or your IRA contributions are maxed out, a deferred annuity can help diversify your retirement plan and build additional wealth outside of these areas. It also offers a tax-efficient vehicle that turns into income later in life.
2. You actually can access your money. The unexpected is what life is all about, and it’s important to be able to access your money when you need it—without hassle. Contrary to some popular misconceptions about annuities "locking up" your money, most annuities available today do allow for withdrawals up to a certain percentage each year without charging an early withdrawal fee.
3. It will last as long as you do. Guaranteed income for life is hard to argue with, but for many, a pension or Social Security payment isn’t enough to maintain the desired retirement lifestyle. An annuity is one of the few options out there that offers a guarantee that won’t run out before you do. (In fact, this is why pensions are almost always based on annuities.)
4. You can allocate a beneficiary. Built-in death benefit agreements come with or can be added to many annuities. With this rider, the remaining account value (or guaranteed minimum surrender value) is paid out to your designated beneficiary, so you don't lose that asset when you die.
5. It offers consumer protection. Annuity claims are backed by the claims-paying ability of any issuing insurance company. Further, if that company fails, state guaranty systems will kick in to protect you, the consumer, making annuities one of the safer financial vehicles that are available to invest in.

Annuities can be integral to a comprehensive retirement plan. Don’t let misconceptions be missed opportunities! We’re here to help break down and simplify topics like this.

Reach out to our team by calling us at 614-300-9501, or fill out our contact form, and we can help you determine if an annuity is a suitable solution for your unique situation.

Sources:

https://www.figmarketing.com/blog/infographic-7-annuity-myths-and-the-truths-behind-them/

Disclaimer:

This information is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Guarantees are subject to the claims-paying ability of the issuing insurance company.