Turbulent Times|Seek Out Retirement Hedges
Cover Your Basics
Even when you reach retirement age you will still have expenses; some of those expenses may decrease but unfortunately they do not disappear. Your basic living expenses will always exist. If you fail to cover your basic living expenses, you may be forced to return to work.
When financial planners refer to basic living expenses they generally mean food, clothing, housing, insurances (home, auto, life, long-term care) and health care or medical expenses.
So that when you retire you stay retired you need a stable source of funds to cover your basic expenses for the rest of your life. Stable means that the money you designate for living expenses should not be subject to market volatility or inflation. Is there such an investment?
Annuities|Retirement Safety & Security
Annuities To Your Rescue
Many investors use annuities as their stable source of money. Retirement income that is generated from conventional retirement investments such as stocks, mutual funds and bonds can be effected by gyrating markets.
Your Guarantee, Your Safety
Annuities will guarantee your retirement income. In other words you cannot outlive retirement income that is generated from an annuity.
Besides social security, the only investment available in the market place that offers a guaranteed stream of income for life is an annuity. Social security of course is an unstable, unpredictable source of funds and someday may be obsolete.
Your Protection, Your Financial Security
When inflation decreases the purchasing power of your retirement income you may come up short when trying to meet expenses. Or your money may not last as long as you had anticipated.
Some annuities protect your retirement income from inflation. If you buy an annuity be sure to include inflation guard if you want to eliminate inflation fears. You can add the inflation guard option to either an immediate or deferred annuity.
Mix It Up For Best Results
If you want a good retirement plan avoid investing in the same type of investment, mix it up.
Even though annuities offer you the safety and financial security you are looking for at retirement, financial planners would advise against investing all of your retirement investments into an annuity. You would be better off putting some of your retirement investments into annuities and then some into personal savings and some in IRA’s, 401k’s.