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What Is the Role of Annuities in Retirement Planning?

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If you’ve spent time developing an investment strategy, you might be familiar with the concept of annuities. While you never want every investment in your portfolio to be the same, annuities are an essential part of creating durable wealth. With that said, what exactly are annuities, and how can you benefit from them?

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A Non-Salesy Annuity Guide To Buying Annuities

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In the past, buying an annuity was a lot of work. The first step toward determining whether an annuity is right for your retirement plan is to do a little research. In most cases, the first step is to answer important questions such as: What is an annuity? Which type of annuity is right for me? What Is an Annuity?

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Annuities: The Pros and Cons

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In the wake of the stock market crash and rising interest rates, consumers are buying annuities. In fact, in the third quarter of 2022, insurance industry trade group Limra estimates that annuity sales totaled almost $80 billion — just beating the Q2 record of $79.4 Annuities do just that.

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What You Need to Know About Annuity Withdrawals

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Unfortunately, when it comes to withdrawing funds from your annuity, it’s not as simple as accessing an ATM and taking cash out of your checking account. Annuities were designed to provide regular income during retirement. Despite this, you can withdraw money from your annuity before retirement without triggering penalties.

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Retiring in California: A Comprehensive Guide to Achieving Your Dream Retirement

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Go for immediate fixed annuities Complement your pension and social security income with immediate fixed annuities to ensure a steady income stream. Reputed insurers offer immediate fixed annuities to warrant income for a pre-defined period. However, the downside of annuities lies in the uncertainty of your longevity.

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Retirement and Philanthropy: Charitable Remainder Trusts (CRTs)

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Let’s delve into the variations and what makes them distinctive: Charitable Remainder Annuity Trusts (CRATs): CRATs offer beneficiaries an income based on a set percentage of the initial fair market value of the assets placed in the trust. This distinction impacts the predictability and growth potential of income payments.

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Retirement and Health Care Costs: What You Need to Know

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Long-term care is made easier with annuities. It is possible to choose from a wide variety of annuities. The types of annuities you can choose from include fixed annuities, fixed-indexed annuities, and variable annuities. There are two types of variable annuities: immediate and deferred.