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If the fear of outliving your retirement savings haunts you, then looking into income sources that can keep going as long as you do may not be such a bad idea. One way to potentially alleviate this financial anxiety is to consider an annuity as a part of your retirement plan.<\/p>\n
Misinformation about annuities has floated for years, but in truth annuities can help diversify retirement portfolios and are one of the few financial solutions that address guaranteed income for life. If you’re interested in adding this to your retirement portfolio, let’s clarify three myths that might answer questions: 1) types of annuities, 2) how they work, and 3) which is right for you.<\/p>\n
Myth #1:<\/b> Annuities are for retirees only<\/p>\n
Truth<\/b>: Annuities can help many people trying to save for their retirement. If your employer-matched savings plans and IRA contributions are maxed out, deferred annuities can be a tax-efficient savings vehicle that can turn into income later.<\/p>\n
Myth #2:<\/b> Annuities are expensive<\/p>\n
Truth<\/b>: Many annuities are competitively priced and don\u2019t charge a maintenance or annual fee. Optional riders provide additional benefits; however, these may come with an annual charge.<\/p>\n
Myth #3:<\/b> Annuities won\u2019t supplement retirement income<\/p>\n
Truth<\/b>: Various payout options can provide a steady stream of income. Additionally, for an additional fee, income riders can help grow your income base for more guaranteed income.<\/p>\n