Annuities can complement estate and retirement plans

In last week's post, we suggested that retirement planning might be an access point to open discussions about estate planning. Today we examine the specific example of annuities.

Should annuities be a factor in your estate planning? According to one commentator, annuities are under utilized, especially since many Americans participate in defined contribution plans, like 401(k) plans, instead of defined contribution products. In fact, many Americans might have no idea regarding the amount of their estimated monthly finances in retirement.

Annuities can be a powerful way to safeguard one's financial future. For those who are afraid of running out of money during retirement, annuities provide a consistent payment stream over a defined time period. Another benefit is that annuity payments are generally unaffected by market fluctuations.

One commentator

suspects that people may be uncomfortable with annuities because of life expectancy projections. In selecting the desired period of time for an annuity's payment schedule, individuals are essentially estimating their mortality. To avoid that subject, individuals may gravitate toward defined contribution plans instead.

Estate planning may be the bridge over these touchy waters. By selecting specific assets that an individual would like to transfer to heirs and loved ones, he or she may also feel more comfortable thinking about the length of time that an annuity should provide payments in retirement.

From annuities to simple wills to complex trusts and powers of attorney, we can provide you with the strategies that will help you realize your goals. Preparing a variety of estate planning documents may provide you with the peace of mind to approach retirement with ease of mind.

Source: Senior Living Executive, "Fear of Death Just Might be a Key Piece to the 'Annuity Puzzle'," May 2016


    • Please enter your first name.
    • Please enter your last name.
    • This isn't a valid phone number.
      Please enter your phone number.
    • This number is my:
    • Please make a selection.
    • This isn't a valid email address.
      Please enter your email address.
    • Please make a selection.
  • Please enter a message.
Put Us On Your Side