This is the second consecutive post on the investment side but I need to get this off my chest.
One thing that this last major market dip has shown me is the wisdom of having fixed income as a part of your investment portfolio. A great way to do this is to have an annuity that pays a monthly income for life no matter what the market does. Depending on your needs, the income from the annuity should match your minimum income needs that will not require major withdrawals from your equity portfolio during a downturn in the market. So a fixed income annuity of 30% of your total portfolio may be a good target for the annuity.
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Essentially a fixed annuity is a wonderful choice to provide you and your family with steady fixed income throughout your retirement. The benefits of tax deferral and the growth of the original investment outweigh the disadvantages of early withdrawal penalties and many decisions and choices that can seem overwhelming upon the initial contract. Be sure to discuss the different types, levels, and floors of annuities with your insurance agent and financial planner, and as well, carefully reading the prospectus offering for your annuity purchase.
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