New York Life Insurance Choices and Annuity Investments
Choosing life insurance and annuities for retirement investments can be a complicated task, but because of the many choices, they should be thoroughly researched.
Making sure one has enough money for retirement can be worrisome and confusing.
Outliving one’s retirement funds could possibly be one of the scariest thoughts when thinking about retirement. But there is an investment product available that can help make sure there is enough money available no matter how long one may live.
An annuity can provide income for life. Unlike traditional life insurance where beneficiaries would get a payment when the policyholder of the life insurance policy died, with an annuity the policy holder can collect the life insurance money while they are still living. In fact, many companies that have retirement plans or pensions are actually using annuities to provide those retirement funds to their employees.
Annuities are a great tool for one to consider when choosing a retirement vehicle. Of course, as with any retirement portfolio, an annuity should not be the only retirement choice but should be used in conjunction with other retirement funds such as one’s personal savings and 401K plan.
There are four basic types of annuities:
· Fixed Annuity: This annuity will provide a certain dollar amount of payments over a specific time period or term.
· Variable Annuity: The variable annuity will provide varied payments because the payments are based on the performance of the investments in the annuity.
· Immediate Annuity: In an immediate annuity the annuity payments would begin immediately after the payment of the annuity is made.
· Deferred Annuity: With a deferred annuity the annuity payments would start at a later time period in order to give the annuity investments time to accumulate more.
Choosing the type of annuity for one’s investment portfolio can depend on many factors including the age of the individual, how much they already have saved for retirement, how much of an annuity premium can they afford, how much they want for retirement and how and when they want their retirement money paid to them.
Annuities are a complex product. There are many other considerations to factor such as the tax advantages and/or disadvantages compared to other retirement vehicles, annuity surrender charges, and available payouts if the annuity policy holder is admitted to a nursing home facility, varying fees such as commissions and surrender charges and the strength of the insurance company providing the annuity.
Because of these considerations and the complexity and importance of what the annuity is being used for, one should always consult a professional to help them find the best New York Life Insurance and annuity for their personal retirement situation.
