Why Do People Use Annuities?

People purchase annuities for Income.

Below are some quotes about annuities from Kiplinger, Harvard Business Review, CNN, CBS News, TIME.com and Fox Business.

 

Kiplinger: The need for lifetime income is huge and growing as life expectancy's continue to increase and traditional sources of guaranteed income disappear.  An immediate annuity is based on a simple concept: You give an insurance company a lump sum and it promises to send you a monthly check for the rest of your life – no matter how long you live. “Lock In Your Retirement Income”

Harvard Business Review:  Our Approach to saving is all wrong: We need to think about monthly income, not net worth….  Risk should be defined from an income perspective, and the risk free assets should be deferred inflation indexed annuities. “The Crisis in Retirement Planning”

CNN: The reason it is hard to duplicate an annuity’s payments is that annuities have a unique feature that allows them to pay more income than you can generate by investing on your own, “mortality credits”.  If you want a more assured income than Social Security alone can provide, then putting a portion of your savings into an immediate (or deferred) annuity may make sense. “The safest way to make your retirement savings last”

CBS News:  One way to avoid running out of money before you die is to by an annuity form an insurance company, which then guarantee’s you a monthly payment no matter how long you live and no matter what happens in the economy. “How long will your retirement savings last?”

Time.com: “Annuities sold through big insurance companies have soared in popularity as retirees have come to understand that guaranteed lifetime income makes them more financially confident – and happier too.  Securing at least a base level of lifetime income should be every retiree’s priority – at least if they want to live happily ever after. ”Lifetime Income Stream Key to Retirement Happiness”

Fox Business: By implementing a product allocation strategy combining annuities with a lifetime income rider and traditional portfolio strategies you vastly increase the chances of having sustainable income in retirement no matter if you live to be 85 or 105 years old. “The difference between investing and income planning”

Please contact me if you'd like additional information.

Thanks,

D Cory Payne

Beehive Insurance Retirement Planning Services

302 West 5400 South #101

Murray, Utah  84107

801-685-6875 Direct

801-685-2899 Fax

cpayne@beehiveinsurance.com

Insurance and annuity products are not sold through Horter Investment Management, LLC.  Horter does not endorse any annuity or insurance products nor does it guarantee their performance.  Owners of these products are subject to the terms and conditions of the policies and contracts of the issuing companies.  All product guarantees depend on the insurance company’s financial strength and claims-paying ability.