In my last post, I discussed the dangers of letting a low-interest environment prompt you to risk your savings in a volatile and likely overpriced stock market. Fortunately, there are options available beyond simply sticking your money in the bank for a miserably small return or exposing yourself to unnecessary market risk.
One in particular, annuities, is a safe and sustainable way for many families and individuals to generate retirement income. And yet, ironically, relatively few people even know about annuities—and fewer still understand them well. While it isn’t surprising that the general public is frequently not aware of annuities, the unfortunate truth is that many financial advisors and wealth management professionals are not even familiar with the intricacies of the annuity option.
Annuities are not for everyone, but if you secure the services of a trusted financial professional who understands annuities, you can potentially find yourself with a safe and sustainable source of income that perfectly meets your needs.
The key is to work with an advisor to determine where you are in your income needs and your investment life cycle. For many investors who can keep an open mind and are smart enough to seek out an advisor who understands all available options, annuities can be an extremely attractive alternative to jumping into a high-risk market or leaving your money to just sit in the bank and stagnate with minimal interest.