SPIAs allow you to turn savings into guaranteed monthly payments that can last the rest of your life. They can be a great retirement tool, but they aren’t a right fit for everyone.
Annuities can be excellent investment vehicles for certain investors. However, there are several reasons not to buy an annuity you need to be aware of before you sign on the dotted line.
Bonus annuities are an incentive provided by insurance companies to entice you to purchase their product. What sounds good now may not be in your best interest years down the road.
Variable annuities are a tax-deferred retirement vehicle to ensure you don’t run out of savings. Because it’s an actual investment product, there is greater reward…and greater risk.
The type of annuity you select should depend on what you’re looking for and what you want your money to do for you: generate lifetime income, save for retirement, or leave money when you pass.