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In an uncertain economy, everyone in the nation planning for retirement can use some amount of certainty when planning for retirement.  Private annuities are not utilized as often as they should be and provide a certain income in an uncertain time.  By funding the annuity with a lump sum or monthly payments, you can set yourself up with a contract that will pay you a designated amount monthly at a specified age.

Annuity advice is much needed for those who lack knowledge in different financial avenues.  While you do not have your Series 6 or 63 licenses, it is understandable that you may not have an in depth understanding of how an annuity actually works.  These financial tools can help annuitants achieve their mid and long-range goals for planning for retirement or future expenses.  An annuity is essentially a tool where buyers insure themselves from out-living their money.  Where life insurance is a policy, it guards families financially for family members who die to soon, annuities protect families financially when retirement has run out.

When you buy an annuity, which is generally offered by a life insurance company, you are scheduling the receipt of periodic payments that are guaranteed.  There are several options of payout, including spread over a lifetime.  If you live longer than the insurance company predicts you will have significantly benefited from the investment, whereas if you were to die early in life you will receive far less than you put in.  While it is a gamble, this investment guarantees a specific monthly income for the remainder of your lifetime and can significantly increase your retirement income.

Annuities are an investment vehicle that allows people to save money over a period of time and offers a guaranteed stream of income that even social security cannot promise.  Consider speaking with an investment professional about single-premium, flexible-premium and immediate annuities to choose the best option for your budget and your need.

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