Are annuities a bad thing?

Often the most demonized investment tool is the annuity. Despite many skeptics, this investment tool is an insurance product that can have many advantages over other types of investment products. They can be utilized in a variety of ways that may provide a safe and secure investment. Using these products can provide a safety net for your retirement assets while other products may have a much higher risk. The other major benefit to an annuity is the ability to avoid probate and pass financial assets to beneficiaries directly by way of a contract. This can provide spouses, family members, and other desired beneficiaries access to financial relief without having to wait for the probate of an estate upon your passing. If you have heard all annuities are bad regardless of your particular financial position and needs, you likely received improper advice. Although these products may not be suitable for all people under all circumstances, there are advantages that should be explored before rushing to judgment. With uncertainty in stock markets and real estate markets, sometimes safeguarding your assets at least in part makes the most sense for your retirement needs. If you have significant monies in a savings account you may want to consider annuities as a better option for both accumulations of wealth and safeguarding against risk. Unlike the past, most annuity products have some flexibility that allows you to draw out monies in a time of need. In addition, there are a variety of different types of annuities that may work for your particular needs. By way of example, there are certain products that provide guaranteed lifetime income in retirement. These types of products can be used to create an instant pension or supplement another retirement plan. Before making a decision regarding the use of these products you should consult with a licensed professional. As you grow closer to retirement age, considering all of your options ensures you do not outlive your retirement savings.