Bohemia, NY (PRWEB) March 18, 2013
On March 18, developer of the retirement planning method Savings2Income, Jerry Golden, unveils the second part of his annuity series, which discusses the ins and outs of fixed payout annuities.
In the newest edition of the “Facts or Fiction” series on annuities, Golden highlights various ways that fixed payout annuities can benefit your retirement plans, as well as addressing common misconceptions about them.
Fixed payout annuities go by the official name, “single premium immediate annuity.” However, the term “single premium” suggests you can only make a one-time purchase for a single amount. Golden says that a better strategy is to “dollar cost average” or ladder into the guaranteed income benefits.
“Many people consider a one-time purchase as being risky, however these annuities can be very beneficial when attempting to convert your personal retirement savings into income you can’t outlive.”.
“It is also important to know the financial components of annuity payments to understand why they might appear attractive, in spite of criticism,” he says. “The payments consist of the return of principal, an interest credit made by the insurance company, and a longevity credit determined by the insurance company for being alive to receive payments contingent on your survival. Since these annuity payments are guaranteed, how these payments are ‘split’ into their components is not important.”
When attempting to understand and utilize fixed payout annuities, Golden says one must consider these steps:
1. Start the analysis with a “base contract” – a life with refund annuity which returns at least the premium you paid.
2. Buy or make deposits to your fixed payout annuity contract in stages.
3. Maintain sufficient liquidity to meet unexpected needs.
4. Constantly shop around for the best deals from top-rated insurance companies.
5. Make these purchases as part of your Plan for Retirement Income.
Golden says advisors can help you sift through the many types of annuity contracts and to understand terminology. “Our job is to show you on what these unique financial products can do for you,” he says. “There are a lot of complex terms in the contract that can be confusing. We swoop in and talk it over with you. We help you pick the best option and devise a plan that will secure you the most dependable income in the long run.”
An innovative retirement planning method called Savings2Income (S2I) created by Jerry Golden seeks to provide a clear path to retirement security for those saving for retirement, soon to retire, and recently retired. S2I incorporates Rollover IRA savings, personal retirement savings held outside an IRA or 401(k) plan and Social Security into an integrated solution.