As we approach retirement, it is important to decrease the risk associated with our investments
(PRWEB) November 17, 2005 –
Statistics show nearly half of all retirees are unable to meet their regular expenses. Those with incomes in the bottom 20 percent rely on Social Security for 80 percent or more of their annual income. With the future of Social Security under constant scrutiny, the development of a personal retirement planning strategy is essential.
“In order to accommodate long-term retirement income needs, people today must include a personal savings plan to supplement Social Security and earnings-based retirement plans,” says Ken Nuss, founder of AnnuityAdvantage.com.
According to Nuss, “In today’s financial world, annuities can provide a sensible solution for a protected, competitive return on a principal-protected investment at any stage in the retirement planning cycle.”
Annuities, investment products offered by insurance companies, have the added benefit of tax-deferral, and are typically guaranteed (to certain limits) by State Guaranty Associations.
Harry Donovan, a 30-year annuities investor, has long relied on the security his annuity investments have provided.
“Every day you hear of companies filing for bankruptcy or falsifying reports,” says Donovan. “I find great comfort in knowing my retirement funds are safely invested in annuities.”
For a typical member of the so-called baby boom generation, the average $1,300 they have accumulated in their personal savings plan can evaporate before the first month of retirement ends. Most widely used investment options carry a risk factor far too high for soon-to-be retirees, while volatile market conditions have put an end to the soaring returns seen just a few years ago.
The wide varieties of annuity options which can be customized to fit the needs of a particular investor include:
- Fixed - allows for compounding interest to accumulate tax-deferred over a period of time with a guaranteed rate of return
- Immediate - creates a guaranteed monthly stream of income
- Equity-Indexed - provides the increased interest potential of a market investment without the market risk
“As we approach retirement, it is important to decrease the risk associated with our investments,” says Kathleen Cohan, a former day trading professional and contributing financial reporter. “Those considering an annuity investment should seek the advice of an Annuity Specialist, who can help guide people through the web of detailed contracts to find the best annuities for their individual needs.”
About AnnuityAdvantage.com (http://www.annuityadvantage.com)
AnnuityAdvantage.com is a one-stop, online annuity shopping service that provides individualized recommendations and guaranteed high-value fixed-rate annuity products. The company’s focus on annuities enables its staff to sort through the array of options and custom-tailor product offerings to people for their retirement planning needs.
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