by: Michael
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Creating a strong retirement plan is the most important thing any individual can do when looking forward at retirement. How do we create a retirement plan that helps us achieve our goals and make sure that our money does not run out?

Many people feel that by using an annuity you can prepare for your golden years and more and more economist are agreeing as well.

What annuities are the best? Which annuities do we choose and why do we choose them? These are important questions but in order to get the answers we must first explore the types of annuities.

There are two types of annuities immediate and deferred. The two types of annuities are easy to identify by their names. Where it gets complicated is when you start getting into to all the subcategories of annuities is where is becomes more confusing.

There are many sub programs and functions of annuities including:

• Index annuities
• Fixed annuities
• Single premium annuities
• and the list goes on

Navigating the maze of annuity types and functions is where you can rely on a good advisor to help you determine what your ultimate goals are, and where you should make your investments.

You must first start by asking yourself some real basic questions such as:

• What is your risk tolerance?
• Learning the product types based upon the above understanding of risk.
• What are your income goals in senior years?
• What is the final assets goal you plan on having?

One thing is for sure, annuities are an important part of income generation as stated in the Wharton financial institution policy brief. Below is a quote on the importance of annuities in planning for senior years.

“Economist  have come to agreement from Germany to new Zealand and from Israel to Canada, that annuitzation of a substantial portion of retirement wealth is the best way to go .The list of economist who have discovered this includes some of the most prominent in the world/among who are Nobel prize winners. Studies supporting this conclusion have been conducted at such heralded schools as MIT, the Wharton school, Berkeley, Chicago, Yale, Harvard, London business school, Illinois, Hebrew university and Carnegie Mellon, just to name a few. The value of annuities in retirement seems to be a rare area of consensus among economist.”

source: Wharton financial institutions center policy brief: personal finance “investing your lump sum at retirement” by David F. Babbel and Craig Merrill, august 14 2007

To learn more about these and many other annuity questions please got to www.annuitynewscenter.com and sign up for our newsletter

About the Author

Michael Cosentino
American Liberty Insurance
800-815-4513

http://annuitynewscenter.com