Over the weekend, my brothers and I had our monthly phone call, as we usually do. Typically, the conversation is filled with laughter, childhood memories, and plans to meet up. However, this time the tone turned serious when we started discussing retirement. My sister has been eager to retire early, while my brother is taking a more traditional approach. As for me, I find myself somewhere in between. While we didn’t get into a heated argument, the conversation did become a bit awkward as we realized how differently we each viewed retirement.
Talking about retirement is always a bit of a downer. It brings up concerns about the uncertainty of life after work, the aging process, and the inevitability of death. These thoughts alone can be terrifying. Add on top of that the stress of figuring out how to financially support oneself during retirement, and it becomes an even bigger burden.
Some of us may have 401(k)s and investments to rely on, while others may plan to downsize their homes or continue working. Social Security or a large inheritance might be in the cards for a few lucky individuals. However, even with a 401(k), it may not be sufficient to live comfortably. And many of the assumptions we make about retirement may not be as guaranteed as we think.
During our conversation, I asked my brothers if they had ever considered an annuity as part of their retirement plans. Surprisingly, they hadn’t even heard of it or knew much about it. This made me realize that annuities are not well-known, despite being around for centuries. In recent decades, the 401(k) has become the go-to retirement plan, but with recent changes, annuities are now being incorporated into employer-sponsored plans.
So, what exactly are annuities? An annuity is a contract between an individual and an insurance company. The individual makes a series of payments or a single payment to the insurance company, and in return, they receive a regular stream of income for the rest of their life. There are different types of annuities, including fixed annuities with guaranteed interest rates, variable annuities tied to market performance, and indexed annuities that combine securities and insurance products.
Annuities can be an effective way to secure retirement income. They provide a guaranteed and steady stream of income, which can alleviate the stress of covering essential expenses in retirement. Additionally, annuities offer tax-deferred growth, meaning taxes are not paid until funds are withdrawn. They can also be customized to include beneficiaries, ensuring loved ones receive continued support after the annuitant’s passing.
However, annuities are not without their drawbacks. Investing always carries some level of risk, and individuals must carefully research and select reputable insurers. Furthermore, annuities often come with high fees and charges, such as commissions, administrative expenses, withdrawal penalties, and redemption fees. It’s crucial to consider annuities after maxing out other retirement funds to ensure they align with one’s overall financial plan.
This is where Due comes in. While they may be newcomers to the retirement game, they have put in the necessary work to establish themselves. Due has obtained regulatory certificates and invests funds in a Charles Schwab account, known for its legitimacy and history. Additionally, Due partners with respected investment firms like Blackstone and ATHOS Private Wealth to manage funds.
Due provides a convenient alternative to traditional financial advisors. Setting up and managing an annuity plan can be done online through the Due annuity calculator, allowing individuals to have complete control over their future. The process takes less than two minutes, saving time and eliminating the need for in-person meetings. Due does not claim to be financial advisors, so it may be beneficial to meet with a trusted advisor annually, but for those who have a clear vision of their financial future, Due offers a hassle-free solution.
One standout feature of Due is the guaranteed income for life. With a 3% interest rate on deposited funds, Due assumes the risks and promises monthly payments for the annuitant’s entire life. By using the annuity calculator, individuals can determine how much income they can expect, enabling them to plan and budget effectively. Deposits are made on either the first or fifteenth of the month, allowing for flexibility and convenience.
Unexpected expenses can throw a wrench into even the best-laid retirement plans. Many people find themselves unprepared, unable to cover emergencies or unforeseen costs. As a result, they often resort to credit card debt or simply ignore the problem. Neither option is ideal. However, with Due’s annuity plan, individuals have a safety net in place. Whether it’s medical bills, home repairs, or any other unexpected expenses, having a guaranteed income stream provides peace of mind and financial security.
In conclusion, discussing retirement can be a daunting task filled with uncertainties. Annuities offer a potential solution by providing a reliable and steady income stream for life. Due simplifies the annuity process, offering a user-friendly online platform and a guarantee of 3% interest on invested funds. While annuities may not be suitable for everyone, Due provides a convenient and trustworthy option for those looking to secure their financial future.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
Over the weekend, my brothers and I had our monthly phone call. He is usually quite cheerful. We communicate, we remember our childhood and we make plans to see each other in person; it’s been forever thanks to this stinking virus.
However, things got a little serious during this call, when we started talking about retirement. My sister is rushing to retire early. My brother is taking the more conventional route. And I’m everywhere.
We don’t get into a heated argument. It was interesting to see how each of us viewed retirement differently. And, maybe that’s what made the conversation a bit awkward.
You see, talking about retirement is a real drag. There’s post-work uncertainty, aging, and the grim inevitability of death to contend with. That alone is terrifying. But, you’re probably also sweating how you’re going to pay for your retirement.
If you have 401(k)s and go to. Perhaps you are going to use your house as capital or plan to continue working. Some of us even have Social Security or a large inheritance.
Even if you are liable to a 401(k), that alone may not be enough to live on. And many of the other lies you tell yourself about retirement aren’t guaranteed.
As my brothers talked over and over again about our individual retirement plans, I asked if any of them had ever considered a annuity. To my surprise, they hadn’t. I was even more surprised by the fact that they knew very little about annuities.
The truth about annuities.
Even though the concept of annuities has been around for centuries, I can’t blame people for not being as familiar with this retirement option. Since the 1980s, the 401(k) has been the de facto retirement plan for both employers and the self-employed.
Although that is starting to change. Due to the SECURE Act, annuities go to employer-sponsored plans like 401(k)s. So now seems like the best time to quickly explain what annuities are and how they work.
What are annuities?
An annuity is a contract between you and an insurance company. You pay that insurance company a single payment or a series of payments. In return, the insurer will give you a regular stream of income going forward.
Just like when you buy your annuity, you also have the option of receiving your payment in a lump sum or a series of payments over time. If you choose the latter, you will receive monthly payments for the rest of your life.
I should add that there are different types of annuities. They usually come in one of three flavors;
- Fixed annuity. With this type, you will receive a guaranteed interest rate on your contributions from the insurance company. They are also regulated by state insurance commissioners.
- variable annuity. Here your contributions are invested in a portfolio of mutual funds. As such, your payout will depend on how much you invest and how the market behaves. That means it will fluctuate. Variable annuities are supervised by the SEC.
- Indexed annuity. Also regulated by state insurance commissioners, this type is a hybrid of securities and insurance products. That just means the insurance company will credit you with a performance based on the stock index.
I’ll be honest. Annuities can get complicated very quickly. So if you want to dig deeper, talk to a trusted financial planner or check out this convenient Ultimate Guide to an Annuity.
Why do people buy annuities?
Short answer? Annuities can be an effective way to “lock in” your retirement. This is mainly because with an annuity you will receive a guaranteed and steady income later in life. Knowing that you have this income to cover your essential expenses in retirement can be a huge sigh of relief.
Another reason? Annuities are tax deferred. That’s just a convoluted way of saying you don’t pay taxes on income and investment gains until you withdraw money from your annuity.
Also, annuities can be customized. For example, if you have a spouse or children, you can name them as beneficiaries. If so, they will receive your annuity payments after you pass away.
Are the risks involved with annuities?
It may seem like I’m pushing annuities pretty hard. But, there are some drawbacks to keep in mind.
First, there is always risk involved with investing. If you buy an annuity, you need to do your due diligence. All that means is making sure the insurer is reputable and will be around for the foreseeable future.
Second, annuities can have expensive fees and charges. These include;
- High commissions for the insurer you bought the annuity from – they have to put food on the table too.
- Administrative expenses for managing your account.
- Withdrawal penalties, usually around 10%, if you withdraw before age 59½.
- Redemption fees if money is withdrawn before a certain period of time.
And finally, annuities should be considered after you have addressed and maxed out the following retirement funds;
- Employer plan with pairing.
- Roth IRA
- employer plan
- traditional IRA
If you’ve addressed the above and are looking to diversify your portfolio, then an annuity might be right for you. And you can buy an annuity from insurance companies, national banks, brokerage houses, and mutual fund companies.
From there, you can save yourself the trouble and work with Due.
How is Due changing the annuity landscape?
Although the company has been around since 2015, Due are new players in the retirement game. But don’t let that dissuade you from buying an annuity from them.
For starters, the company has spent years putting this together. Because? In order to hook the regulatory certificates. That is something that Acorns and definitely Bitcoin cannot boast of.
In addition, Due invests his money in a Charles Schwab account. I’m sure you’ve heard of Schwab, they’re a legitimate financial services company that’s been around since 1971. So I think they’ll stick around. From there, his hard-earned money will be managed by two of the country’s leading investment firms: Blackstone (NYSE: BX) and ATHOS Private Wealth.
In short, you can trust Due to be reliable and secure. But, if you’re still undecided, here are a couple of other reasons why past-due annuities have ushered in a whole new world of retirement.
You do not need to meet with a financial advisor.
Who has time for this? Also, a financial adviser could be pointing you in the wrong direction. Not that you can blame them. They probably have a large number of accounts to manage, so it may not always be a priority for them.
And they have a tendency to push mutual funds. Or, if they sell you an annuity, expect to reward them handsomely with a commission. That’s on top of the exorbitant fees they charge just to meet with you.
That is not the case with Due.
You can open and manage your annuity plan whenever you want. Simply enter your information in the Due annuity calculator and you will know exactly how much you you need to contribute every month. But, because there are no contribution limits, you can contribute as much as you’re comfortable with.
I like having so much control over my future.
It is also due up front that they are not financial advisers. Therefore, it would not hurt to meet with them annually. My point is that you don’t have to schedule a meeting with them if you know what you want your financial future to look like. And this will save you time as it will take you less than 2 minutes to set up your free Overdue account.
You will earn a guaranteed income, for life.
Remember, the main benefit of an annuity is that you will earn a guaranteed income for life. With Due, you’ll earn 3% interest on all the money in your account. They assume all the risks and promise to deliver monthly payments for the rest of your life.
If you have already used the calculator, then you already know how much money will come to you. That means you can create and stick to a budget when you retire And you will receive deposits on the first or fifteenth of the month. You can choose the date that suits you best.
Are you experiencing a problem? No problem.
Excuse my language. But shit happens. Unfortunately, most of us are not ready. This is definitely true when it comes to unforeseen expenses like 41% can’t even cover a $1,000 emergency.
As a consequence, we dive into credit card debt or just stop ignoring the problem. It’s not ideal either.
For example, if you have a balance of $2,000 with an APR of 20% and a minimum payment of 1%, it will take you 15.5 years to pay off that card! And pretending there isn’t a problem won’t magically make it go away; I’m sorry to be the bearer of bad news.
There is another option. And that is withdrawing money from your annuity. Financial experts would scoff at this. But, desperate times call for desperate measures.
And, in my opinion, I would rather receive a 10% penalty than lose the battle against high interest rates.
Look, I’m not advocating that you withdraw your money. I’m just saying that if you’re in a bind, you can log into your account and request a withdrawal. You will then have your money within five business days.
The bottom line.
If you are looking to increase your retirement savings and want ensure a secure financial future, then an annuity plan is worth exploring. And thanks to Due, this has never been so easy and accessible for anyone to enjoy.
The charge A New World of Retirement with Due Annuities first appeared in Earring.
—————————————————-