Although nobody knows what the future has in store for us, it’s important we start preparing for it before it’s too late. As a person grows older, he/she tends to start thinking about taking a permanent break from reality to enjoy the finer things in life. In order to do so, however, you should consider investing in an annuity to add to your retirement funds.

You can purchase an annuity through any life insurance company, but make sure you inquire about its pros and cons before taking the plunge. Here are a few fundamental understandings you should have regarding your annuity as it pertains to assisting your retirement funds:

• The annuity process consists of you paying periodic payments until a specified date, at which point you receive payments back equaling the value of your annuity.
• Certain annuities can accumulate over time.
• Some annuities are more expensive than others and present a greater risk.

An annuity should not be the only source adding to your retirement funds. Since it’s good to have options, here are some other ways you can increase your funds:

• A quality pension plan
• Employer sponsored 401(k) plans
• IRAs

Expanding Your Retirement Funds

With the economy currently in a downturn, employers are cutting benefits left and right, making it difficult for any retirement funds to grow efficiently. An annuity, however, if handled properly with care, can do big things for your retirement funds. If you’re looking to sail the seven seas but need your retirement funds to expand, contact your life insurance agent to discover what wonders an annuity can do for you.

Staff contribution: Rafael Onak