Less than 20 % of the U.S. population has one of those “good ‘ole” pension plans that their grandparents had when they retired. A few remaining people who do have a pension plan are sadly finding out that the organizations who promised those “guarantee checks” for the rest of their lives have been doing some major miscalculating. They have underfunded the amount they needed to save. The rate they thought they were going to get on their money is substantially lowered On top of it they thought you was going to die a lot earlier than you actually did. (Great job taking of care of yourself!)
When we retire we still need to make sure we have a check coming in on the 1st. So we can keep lights on, play a round or two of golf and be able to go on a trip or two when our spouse says let’s go somewhere fun.
The only way we can fully guarantee that a check comes in on the 1st of every single month is to pay for our necessities is with an annuity. With the ups and down of the stock market and low interest rates on certificate of deposits (C.D.) the only way we can make sure we don’t lose our money when the market crashes or your money runs is by having it in annuity.
In 2008, when the market crashed how many banks crashed? 100’s! Do you remember hearing about hundreds of life insurance companies, failing? Nope! Because they didn’t. They primarily stayed intact because they were built for tough times. This is due to their investment and reserves guidelines that the federal government require.
Because of these guidelines they can make sure that you have a check coming in on 1st of every month without worry about market conditions, collapses and inflation. Should you invest all your money in this type of saving vehicle? No! Of course not. You may need to be a little aggressive and take some risk. But; if you need a guaranteed check on top of your Social Security than annuity is your best bet.