June is Annuity Awareness Month—a perfect time to take a closer look at the essential role annuities can play in creating a secure and predictable retirement. At Blue Marble Advisors, we believe understanding annuities is crucial to building a retirement strategy that provides lifetime financial stability.
What is an Annuity?
Simply put, an annuity is a financial product offered by insurance companies designed to provide guaranteed income during retirement. There are several types of annuities—fixed, indexed, and variable—each with unique features tailored to different retirement goals and risk tolerances.
-
Fixed Annuities offer guaranteed, predictable income streams with a fixed interest rate.
-
Indexed Annuities provide returns linked to a market index, balancing growth potential with downside protection.
-
Variable Annuities offer investment options with higher growth potential but carry more market risk.
Why Consider an Annuity?
-
Guaranteed Lifetime Income: Annuities can offer peace of mind by providing a steady income stream that you cannot outlive.
-
Protection from Market Volatility: Depending on the annuity chosen, your principal may be shielded from market downturns.
-
Tax-Deferred Growth: Earnings from an annuity grow tax-deferred, which means you won’t pay taxes until you start receiving payments.
Annuities and Your Retirement Plan
At Blue Marble Advisors, we understand that everyone’s retirement goals are different. That’s why we take a personalized approach to integrating annuities into your overall financial plan. We consider factors like your current financial situation, retirement aspirations, and risk comfort level to help determine if annuities make sense for you.
Common Misconceptions
Many people avoid annuities because of common misconceptions, such as thinking they are overly complex or too expensive. In reality, when properly structured and clearly understood, annuities can be highly beneficial and cost-effective financial tools.
Take the Next Step
Annuity Awareness Month is an ideal opportunity to reevaluate your retirement plan. Whether you’re nearing retirement or just starting your financial planning journey, Blue Marble Advisors is here to guide you every step of the way. Let us help you determine if annuities should be a part of your financial future.
Ready to learn more about annuities? Contact Blue Marble Advisors today and schedule your complimentary consultation!