Gold Harvest Group Helps People Use Annuities as a Key Element in Their Retirement Income Strategy
Gold Harvest Group, a company based in Austin, TX, is pleased to announce that they are helping people use annuities as a key element in their retirement income strategy. They are in the business of helping people invest to ensure that they will have sufficient funds when they retire. An annuity can be used by people who are fearful about spending their assets when they retire using the 4 and 1/2 percent rule. They fear that their portfolio of assets may not be able to generate a sufficient amount to fund their retirement expenses. On the other hand, some fear the opposite in that the assets may be producing much more and they are too conservative and missing out on an abundant retirement.
Roman Lejeune from Gold Harvest Group explained, “To prevent such fears, a recommended strategy is to transform assets into guaranteed income. The key point to remember is that people are much more comfortable living with a fixed income stream rather than spending assets and not knowing when these will last. The technique is to set aside a percentage of the retirement assets and use it to buy a fixed annuity income stream. This annuity income may start at once or it can be deferred until such time that the person attains a certain age. The annuity income may pay a regular income for life, for a certain number of years or for the greater of life, and a guaranteed number of years.”
It is important to remember that commercial annuities can provide several flexible features and options that can be beneficial when developing a retirement income strategy. One strategy is to ladder the buying of annuities, which is done by purchasing annuities that start and end at different times. Another technique is to target several payout periods for the annuities. Another method that can be used for annuities is to use them as a safety net for health care needs during retirement. While they may not be used to replace long-term care insurance and Medigap, they can provide a safety net for the retiree.
Another advantage of annuities is that they can offer a safe tax-deferred growth for a person’s retirement nest egg funds, although the returns will depend on the person’s age, location, and assets. However, just like with any other kind of investment, annuities can be complex and it is always a good idea to consult with a professional financial advisor.
It should be noted that the term of the annuity will be dependent on the kind of annuity and the payout period that is needed. With an immediate annuity, the plan can be funded with a lump sum investment that is given upfront, after which the income payments can be received immediately. With a deferred annuity, the plan can be funded over a certain number of years. This funding period is usually the difference between the expected retirement age and the investor’s present age to allow the start of the income payments to coincide with the person’s start of retirement.
The period of the income payments from the annuity can be specified by the investor. There are three major kinds of income payment plans. Lifetime payments offer guaranteed income for the person’s lifetime but there are no benefits for the person’s survivors after passing away. Income for a guaranteed number of years is also possible in which the payments will continue even after death, with the survivors receiving the payments until the end of term. And finally, there is the income for life with a guaranteed period benefit, where the investor receives income for a specified length of time and the payments will continue even after death with the survivors receiving them until the end of term if the investor dies before the term ends. However, if the investor lives beyond the specified term, the annuity will pay an income for the rest of the investor’s life.
Those who want to learn more about using annuities in a retirement income strategy may want to visit the Gold Harvest Group website at http://www.goldharvestgroup.com/, or contact Roman and his team directly.
They are open from Monday to Friday, from 8:00 am to 5:00 pm.
For more information about Gold Harvest Group, contact the company here:
Gold Harvest Group
S MoPac Expy, Austin, TX 78746