Annuities?
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actually any of the above retirement plans will be passed on to your heirs. At your age you should be putting money in both a pretaxed and after taxed retirement vehicle. The reason for this is becuase if you put it all in a pretaxed investment you may put yourself in a position where you will have to withdraw a amount from your retirement plan that it puts you in the maximum tax bracket. so make sure you are contributing to both and ira or 401k and a roth ira.
traditionally Annuities are more of an option and suggestion for a middle aged person so I wouldn't consider one until you are a little older. And actually depending on what kind of annuity you chose the annuity may not be passed on to your heirs. For example a life annuity will pay you the most monthly but will not be passed on to your heirs. You should definitely wait for several years to consider an annuity until you see where you stand. You actually may find that you will be better in retirement by living off tax free interest of municipal bonds than an annuity.
If you want a fixed monthly income in retirement you could considere finding a job that has a pension benefit.
you need to accumulate capital long before you have to worry about how to get an income for life out of it.
if you are 45 years from retirement, start investing now, contribute regularly to mutual funds that will grow over time and give you a big nest egg. Either get a financial planner or talk to the investment arm of your bank
unfortunately, you did your research.an annuity is really the only thing unless you want to explore some life insurance products, but there is so many variables to discuss I couldn't possibly do it here. But you need to understand an annuity. The basic premise of an annuity is basically insuring the stock market. What you are referring to as "expensive" is the guarantees. But remember, most of those guarantees are only costing you between 1.5-3.5%. I don't think that is very "expensive" given the features.
The insurance industry are very powerful and very good lobbiest in Washington. The only products out there that offer tax deferred and guarantee capabilities. If you want to be paid for life though(turn on the annuity feature) some annuities won't pass the lump sum onto your heirs others will. Look for an annuity with annual payments for life and pass the money to heirs. Some have a feature that only allows 7-11% a year to be paid out.
Think of an annuity like a car, so many different features, some matter to you and some don't, so make sure you are paying for what you want and nothing that you don't. I think you need to talk to a financial professional.
Given your age and if you have maxed out your retirement savings (401k and ira) and you still want a tax deferred vehicle-the annuity is a good choice. Again, talk to a financial professional.
Are you that same kid who was on here before touting your elementary knowledge of annuities because you just got your 6 and 63 certifications?
I do about $10 million a year in annuity business and they are good for some situations and shitty for others. Like "paying the remaining to your heirs."
Do you have any knowledge of the tax implications of dying with an annuity in your posession even with stepped up or increased death benefits? Look into this before someone suckers you into some **** product. If you are 45+ years from retirement, what the hell do you care about a monthly income. Find a good broker and swing for the fences to make as much as possible. Then consider an annuity for protection later in life perhaps. Lets do this.you buy your annuity and Ill take my SMA and lets see who has more in 20 years.
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