If you are nearing retirement age, you are likely familiar with the term “annuities”. Long considered a very safe investment for seniors that ensures cash flow later in your retirement, it is often part of a retiree’s portfolio along with a life insurance policy to cover any expenses at death. An annuity can be de3scribed as a conversion tool, which allows a lump sum of insurance benefits to be paid out to the holder in monthly installments. The key to a good portfolio for anyone is diversity. Annuities are great for cash flow, but can throw a monkey wrench into the equation if the economy struggles with high inflation, or if the retiree has an emergency which requires quick liquidation of assets.
This entry was posted on Sunday, June 16th, 2013 at 6:04 pm and is filed under Insurance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.