A variable annuity offers a variety of benefits. For one thing, your earnings have the opportunity to grow tax-deferred. Also, you can usually choose from a variety of investment options. Plus, you can typically contribute more to your variable annuity than to your 401(k) and your IRA.
When it’s time to take payouts from your annuity, you have great flexibility. You could, for example, choose to receive a lifetime income stream.
Of course, the word “variable” is there for a reason your annuity’s account value will fluctuate with the market and is subject to loss of principal. Variable annuities are not suitable for everyone. They are long-term investments designed as one component of saving for retirement.
Still, in your quest to achieve a comfortable retirement, you may find that a variable annuity is a valuable asset so give it some thought.
To Retire Comfortably, Know Which Moves to Make and When to Make Them
We all want a comfortable retirement. To achieve it, we’ll need to make different moves, and consider different issues, at different times of our lives.
For example, when you have many decades to go until you retire, you may want to invest a higher percentage in growth-oriented investments for your IRA and. 401(k), keeping in mind that short-term market declines are a normal part of investing.
Fast forward to when you’re a few years from retirement. At this stage, you may want to boost your retirement income. One possibility is to consider an annuity, designed to provide a lifetime income stream.
Once you retire, you’ll need to look at other decisions, such as when to start taking Social Security and how much to withdraw each year from your IRA and 401(k).
By working with your financial professional, you can make a plan to help you meet the retirement lifestyle that you’ve envisioned.
Contact Wendell at Edward Jones www.edwardjones.com.