Enjoying Your Golden Years

If you are interested in investing some money in an annuity, you should talk to a financial planner, such as Fogel Capital Management, Inc., before you choose one. There are many different types available, and each offers pros and cons. One concern you might have is making sure the money in the annuity is transferred to your kids when you die. This is not a standard procedure with all annuity types, so you will have to know which type to choose if this is something you want to achieve. Here are several things to know about annuities and how they work.

Standard annuities stop when you die

Most annuities offer a way for people to collect payments until they die after retirement. If the person dies a lot faster than expected, the balance in the annuity does not get distributed to family members. It simply goes away, and it is basically used to pay the annuity payments of other investors that have annuities with that particular life insurance company.  

Guaranteed payout annuities may be the option

If you do not like the way a standard annuity works, your financial planner might suggest purchasing an annuity with a guaranteed payout option. This type of annuity will work just like any other type. It will offer payments to you on a regular basis, but these payments will continue if you die.

The only thing you should realize is that the payments after you die would only continue for as long as they would have if you had stayed living. At some point in an annuity, the balance might run out, or the time frame will end.

With a guaranteed payout annuity, you can be certain that your money will not be wasted. Your beneficiaries will receive the payouts left in the account. This could be for a year, or it could be for 20 years. This will depend on the amount of money in your annuity and the time frame left on it.

You must list the beneficiaries

To make sure the right people receive the payouts, you must list their names on the annuity when you purchase it. If there comes a time when you would like to change the beneficiaries, you could do so by contacting the insurance company that sold you the annuity. You may also want to list this information on your will, just so your family knows about the annuity and how it should work.

If an annuity sounds like a good option for you, contact a financial planner. He or she will help you select one that is right for your needs.