Bohemia, NY (PRWEB) November 14, 2013
Chris Hobart, the CEO of Hobart Financial Group, a leading retirement planning company, responds to an article published by Financial Advisor Magazine on October 30th, which discusses how annuities can boost retirement income.
According to the Financial Advisor Magazine article titled “Youth beats middle age in retirement planning,” many people possess negative views about annuities. However, most research suggests that annuities can help people generate dependable income for retirement.
There are a few different types of annuities: immediate, fixed, fixed index and variable. While most have their pros and cons, many retirees have a tough finding the right one to fit their needs. However, they all provide spendable income for life. Immediate annuities are one of the most popular types of annuities. “There is no growth period prior to taking income, and no residual value passing to beneficiaries. This may be a cause of alarm to many, while perfect for others,” the article says.
Fixed, fixed index and variable annuities all provide tax-deferred lifetime income with residual value to pass on to beneficiaries or children. The article says annuities are not guaranteed to generate more income than other types of investments. However, they are designed for guaranteed lifetime income. “Annuities are designed not to fail: to remove the possibility of market and interest-rate risk reducing your income or running dry.”
Chris Hobart, CEO of Hobart Financial Group, a leading retirement planning company, says annuities have a bad reputation, but provide a way for potential retirees to save money over the long term. “Annuities are generally low-risk investments,” he says. “There are many annuities that are tax deferred, which gives retirees the ability to save the money they would have otherwise paid in income taxes for other types of investments. Annuities can help retirees generate sustainable, spendable income for life.”
Hobart continues, “However, people need to realize these are products for long-term growth. Withdrawing funds from a premature annuity can result in penalties. Those looking to get money fast should not invest in an annuity.”
Hobart Financial Group is an independent North Carolina financial advisory firm dedicated to personalizing service with uncompromising integrity. Its focus on comprehensive, tax-advantaged plans help to provide sound preservation of capital, growing income and increased returns with reduced risk. Chris Hobart, founder of Hobart Financial Group, understands that true wealth means being able to share your life with the people you love, free from financial anxiety. Hobart Financial helps Carolinas’ retirees preserve and protect their wealth with comprehensive financial retirement planning and wealth management.