The following is a list of those that more than likely would benefit most from an annuity:
- Boomer Couples with 401(k) or 403(b) accounts – a qualified annuity could be the answer to their worries, allowing them to space out their tax liabilities, and add certain guarantees;
- Women – they live longer and therefore sometimes are great candidates for guaranteed lifetime income;
- The middle class and affluent – taxes are the bain of both groups and with rising tax rates on the way (without or without compromise in Washington), the annuity offers another way to defer such taxation;
- Retirees who don’t have a defined benefit plan – the disappearance of such plans fuel the demand for income annuities to stabilize cash flows in retirement;
- People with good family genes – if you plan to live longer or have a family history of living longer than the mortality tables, longevity is your issue and why not offload that risk on the insurer;
- Market bears and pessimists –guaranteed minimum value annuities can help with such fears; diversification of investment strategies and assets can complete the plan.
- The middle aged – these individuals have enough time for compounding, but are less impacted by the 59 ½ minimum age for withdrawal without federal penalty than younger adults;
- People who want to turn a tax bite into bite-sized pieces – annuities turn a payout into an income stream that is partially or fully taxable over many years;
- Those seeking less-expensive long-term care insurance – new riders allow you to combine the annuity and long-term care insurance…it’s worth exploring since long-term care on an outright basis is now extremely difficult to obtain.
- People without beneficiaries – shifting the risk of longevity to the insurance company may make sense and income annuities allow you to essentially “die broke.”
Which use fits your needs? Maybe we can help. Call us or sign up online for a Free Second Opinion.