Do Annuities Ever Run Out Of Money?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

When Annuities Can Run Out of Money

Several factors can cause an annuity to run out of money:

  1. Penalty-Free Withdrawals: If you take penalty-free withdrawals from your annuity, it can be depleted over time. While this provides immediate access to funds, it reduces the longevity of your annuity.
  2. Period Certain Payouts: Choosing a period-certain payout means your annuity will pay out for a specific period. If you outlive this period, your income stops, potentially leaving you without financial support.
  3. Variable Annuities and Market Risks: Variable annuities are subject to market volatility. High fees and poor market performance can erode your principal, leading to the exhaustion of your annuity funds.

How Your Annuity Never Runs Out of Money

The key to ensuring your annuity never runs out of money lies in strategic planning and choosing the right options:

  1. Guaranteed Lifetime Income Riders: Adding a guaranteed lifetime income rider to your annuity ensures you receive payments for life, regardless of your account balance. This rider provides peace of mind, knowing you will never outlive your income.
  2. Annuitization with Life-Based Payouts: Opting for a life-based payout annuitization means your annuity will provide payments for as long as you live. This option guarantees a steady income stream throughout your retirement, eliminating the risk of outliving your funds.
  3. The 4% Rule: Utilizing the 4% rule can help manage your withdrawals effectively. Limiting your annual withdrawals to 4% of your initial retirement portfolio can extend the life of your annuity and other retirement savings, ensuring a sustainable income.
  4. Professional Guidance: Working with a knowledgeable advisor can help you navigate the complexities of annuities and make informed decisions that align with your financial goals.

How We Can Help

At The Annuity Expert, we understand the fear of running out of money in retirement. We’ve been helping individuals like you for over 15 years as an insurance agency, annuity broker, and retirement planner. We believe in finding the best solutions at the lowest costs, ensuring you get the maximum benefit from your investments.

Understanding Your Concerns

We know that the thought of depleting your retirement savings can be stressful. You want to enjoy your golden years without the burden of financial insecurity. That’s why we focus on providing personalized solutions tailored to your unique needs.

Our Expertise

With our extensive experience, we have the knowledge and expertise to guide you through the process of selecting and managing your annuity. We will help you understand the risks, benefits, and options available to ensure your annuity lasts a lifetime.

Do Annuities Run Out Of Money

What We Recommend

Step 1: Initial Consultation

The first step is to schedule a free consultation with us. During this meeting, we will assess your current financial situation, retirement goals, and any existing annuities you may have. The main benefit of this step is gaining a clear understanding of your needs and how we can help.

Step 2: Customized Plan Development

Next, we will develop a customized annuity plan tailored to your specific requirements. This plan will include recommendations on the type of annuity, additional riders, and withdrawal strategies, such as the 4% rule and life-based payout annuitization to ensure your income lasts. The main benefit here is receiving a personalized strategy that maximizes your financial security.

Step 3: Implementation and Ongoing Support

Finally, we will assist you in implementing your annuity plan and provide ongoing support to monitor and adjust as needed. This ensures that your plan remains effective and adapts to any changes in your life or financial situation. The main benefit is continuous peace of mind, knowing your retirement income is secure.

Features and Benefits

  • Guaranteed Lifetime Income Riders: Ensures you never outlive your income.
  • Life-Based Payout Annuitization: Provides a steady income stream for life.
  • The 4% Rule: Helps manage withdrawals to extend the life of your annuity.
  • Personalized Planning: Tailors strategies to your specific needs.
  • Expert Guidance: Leverages 15 years of experience to make informed decisions.
  • Ongoing Support: Provides continuous monitoring and adjustments.

Addressing Common Objections

  • Concern about Fees: We offer competitive pricing and transparent fee structures.
  • Fear of Market Volatility: We recommend strategies that minimize exposure to market risks.
  • Uncertainty about Annuities: We provide clear, easy-to-understand explanations and personalized advice.

By not working with us, you risk running out of money in retirement, facing financial insecurity, and making uninformed decisions. Conversely, working with us ensures a secure, worry-free retirement with a reliable income stream.

Imagine the relief of knowing your financial future is secure. You’ll experience peace of mind, confidence in your financial decisions, and the freedom to enjoy your retirement without financial stress. Contact us today for free advice or a quote, and take the first step toward securing your financial future.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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