On Monday, I discussed several ways you can fund your retirement. You can hide under a rock and think the Gov’t will pay you, or you can face the truth and build your own plan. This retirement plan will have to be based on solid ground: sound investments (such as dividend investing), maybe real estate (if you don’t mind tenants and maintenance) as well as a guaranteed minimum income.
This minimum income base is important as you can avoid withdrawing cash from your investments at market lows or selling your rental property at a rebate due to a lack of cash flow. Risk adverse investors will prefer safer ways to invest. Unfortunately, the high interest certificate of deposit market has been closed since 2008 and it won’t reopen any time soon. In order to build a solid base of income at retirement, you can also consider buying an annuity.
Like any other financial product, an annuity is not the perfect solution for all your problems. However, I think it’s important for you to consider this product in your retirement plan. The thing is, annuities are darn hard to understand. This is why I started to show some interest in this topic and found the most complete resource about annuities on the web… and it’s free!
I even had a talk with Nathaniel Pulsifer, a Retirement Income Expert and owner of Straight Talk Annuity. He wrote not 1, not 2 but 9 books to cover each type of annuity. I told him about my readers and he offered to share his books with you for free.
All you need to do is to register to his website in order to access all the books you want to download. It’s easy, free and… straightforward
Just to tease you, here’s the list all the topics he wrote about:
Still Not Sure You Should Consider Annuities?
Why would you download more books that you can read, huh? I know the feeling and this is why I don’t want to waste your time either. I’ve done a lot of research about annuities lately, and here are the characteristics of people who should look for annuities. If you recognize yourself in at least 2 of the following points, I think you should download the books:
#1 You are concerned about your retirement plan. You don’t have all the answers to your retirement plan and are starting to think you might not have enough money save to support your lifestyle.
#2 You are familiar with investments. An annuity is an investment. This is why it’s important that you have invested before so you can understand and appreciate the characteristics of annuities.
#3 You are looking for a stable stream of income. You don’t want to go with the ups and downs of the market and would rather have a safe income base that is guaranteed to land in your bank account monthly.
#4 You are concerned about longevity. A while ago, retirees were living off their savings a few years and would then pass away. Now, your life expectancy will easily surpass 85. Can you afford to live that long?
#5 You tend to be risk-averse moving towards your retired years. If you have been looking for 5%+ dividend stocks all your life, you will definitely not be impressed by annuity rates. However, that’s not the point. Risk-averse investors will consider a lower yield in return for a guaranteed payment. There’s a price to pay for stability.
#6 You are in a high income tax bracket. If you buy your annuity outside your retirement account, you will benefit from less tax when compared to interest or dividend distributions since a part of the income is considered a return of capital (ROC).
#7 You are pessimistic. Those who believe the market will crash should definitely consider buying an annuity. It will help you secure your portfolio and insure its distribution sustainability.
#8 You are a Woman! Since women have a better life expectancy than men, their need for an annuity is more significant. The investment return should be better for women than for men.
You Don’t Need All 8 Points to Download the Books
I think that if you have 2 or more of the 8 points I’ve listed, you should at least consider adding an annuity to your portfolio. It may not suit you but after you read more about the topic, you will be able to determine if it’s a good investment or not.
Ready? Simply click here and register to access the free library!
You are interested in dividend investing? Check out my Free Dividend Investing eBook and don't forget to sign-up to my RSS Feeds!