Did You Know These 12 Facts About Annuities That Could Help Your Finances?

March 3, 2021 · Saving & Spending

A sturdy wooden front door of a modern home, symbolizing security. — A sturdy wooden door and stone walls symbolize the financial security and creditor protection annuities provide.

Use an Annuity to Help Fulfill Required Minimum Distributions

Alternatively, you can use an immediate annuity with an IRA in order to fulfill your required minimum distributions if you’re over the age of 72. This is a great way to also get a guaranteed lifetime income that can help pay for a comfortable retirement.

Immediate annuities work by converting assets to income in an efficient manner. The downside is the fact that you’ll no longer have cash value and you will have little or no ability to change the income stream after it starts.

Before buying one you have to have adequate liquidity. Assess your total financial situation, hopefully with the help of a professional, to see if this is the right choice for you.

Have we helped answer some questions about annuities? Let us know by commenting below!