There is a lot of confusion about annuities. Many people are unsure whether or not annuities ever run out of money. In this guide, we will explore the answer to that question and provide some clarification about annuities. Stay tuned for more information!
Annuities Will Run Out Of Money If
There are several ways an annuity can run out of money.
- The annuity can be depleted if withdrawals are taken from the annuity through a penalty-free withdrawal.
- Additionally, if the annuity is annuitized and a period certain payout is selected, the annuity can also be exhausted.
- Finally, if a person owns a variable annuity and incurs losses due to stock market volatility or high fees, the annuity can run out of money.
While there are several risks associated with owning an annuity, careful planning can help to ensure that the annuity will last for the duration of the owner’s lifetime.
Annuities Will Never Run Out Of Money If
One of the biggest concerns regarding retirement planning is running out of money. After all, no one wants to have to return to work in their golden years.
An annuity can help to ease these fears by providing a guaranteed income stream, but what happens if the account balance is depleted?
This is where a guaranteed lifetime income rider comes in. This rider ensures that monthly payments will continue to be made, even if the account balance is gone.
As a result, annuity owners can rest assured that they will never outlive their income.
Annuities can be a great way to save for retirement, but it’s essential to understand all the details before deciding. We hope this guide has helped you better understand what annuities are and how they work. If you have any questions or would like more information, please don’t hesitate to contact us. We would happily provide you with a free quote and help you start your retirement planning today. Thanks for reading!
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