Annuity Definition and 5 Ways to Pay for Retirement | Summary and Q&A

TL;DR

Annuities are a guaranteed income investment that can provide a reliable source of income in retirement, and there are five additional ways to close the income gap.

Key Insights

• 🚟 Annuities are a popular option for guaranteed income in retirement due to the decline of pensions and uncertainty around Social Security.
• 🤕 Age Up offers a more affordable and flexible income annuity option for individuals and their parents, with lower upfront costs and customizable payout start ages.

Transcript

what is an income annuity and how can it help you close that income gap in retirement in this video I'll show you how an annuity can guarantee income for you or your loved ones in retirement then I'll reveal five more ways to close that income gap and pay for your golden years we're talking annuities explained today and let's talk money each day co... Read More

Questions & Answers

Q: What is an annuity and how does it guarantee income in retirement?

An annuity is a guaranteed income investment sold by insurance companies. It can provide a fixed amount of income either immediately or at a later date, ensuring a steady stream of money during retirement.

Q: How do annuities help to close the income gap in retirement?

Annuities can be an opportunity to fill the income gap because they offer a reliable source of passive income. By investing in an annuity, individuals can receive guaranteed payments that won't change each month, providing stability during retirement.

Q: What are the pros and cons of annuities?

The pros of annuities include guaranteed income for life, fixed and known amounts of income, and a guaranteed return on investments. However, the cons include lower returns compared to other investments, regular income taxation, and reliance on the reliability of the insurance company.

Q: How does Age Up's income annuity differ from traditional annuities?

Age Up is a unique income annuity as it allows individuals to buy annuities for themselves or their parents. It offers lower upfront costs, starting payouts at ages between 91 and 100, and the option to receive contributions back if the annuitant doesn't live to the payment start date.

Summary & Key Takeaways

• Annuities are a type of investment sold by insurance companies that guarantee a fixed amount of income. They can be immediate or deferred, depending on when payments start.

• Annuities have become popular in retirement planning due to the decline of pensions and uncertainty around Social Security. They provide passive and guaranteed income.

• Age Up is an income annuity backed by MassMutual that offers guaranteed income for yourself or your parents at a certain age, with monthly contributions as low as $25.