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Be Wise With Money

Tools To Help Make Your Money Last

financial tools

The ultimate goal of saving for retirement is to have enough money to last you the rest of your life once you retire. There are many financial tools that can help you accumulate your retirement savings – but you may also need something that helps ensure those savings don't run out before you run out of time.

An annuity can help you do both. They're designed to help you save money for retirement as well as provide you with income while you're living in retirement.

What is an annuity?

Annuities are long-term products used for saving for retirement. They can be purchased from an insurer and are designed to create a future income. You can choose to receive income through a number of options, including payments for life. The size of the payments you receive are determined by a variety of factors, including the length of your payment period, joint or single life income payouts, and guaranteed time frames

  How it works Benefit  Considerations

Deferred fixed annuity

With a deferred fixed annuity, your assets grow with a guaranteed interest rate and you don't pay taxes on the earnings until you take your money out. This is for people who don't need money right away but want to defer to a later date to start taking money from the annuity. Get a guaranteed interest rate with tax deferral. You can't access the full balance during the surrender period without penalty, which can range from three to 10 years (although you may be able to withdraw up to 10% per year without paying penalties, depending on the contract).
Deferred fixed indexed annuity In a deferred fixed indexed annuity your assets have the potential to grow as the market (an index) grows, up to a cap. If market performance is negative, your assets will not decrease. This is for people who are looking for a way to turn savings into income in retirement. Principal protection and potential growth of assets with tax deferral.

Growth potential is limited to a cap. You can't access the full balance during the surrender period without penalty. Depending on the contract, you may be able to withdraw up to

10% per year without paying surrender charges.

Variable annuity

You can invest the money you put in the variable annuity in a variety of investment options called subaccounts. You can have different investments within one variable annuity, including stock and bonds subaccounts, as well as a fixed account with a guaranteed interest rate. The value of the annuity has the potential to grow based on the performance of the subaccounts. You also can add guarantees, for an additional charge, to the annuity, such as the ability to create lifetime withdrawals. There are fees, which are based on the number of features you want to come with your annuity. The value of your annuity can go up or down based on the investment performance of the subaccounts.
 Single premium immediate annuity As the name suggests, an immediate annuity creates an immediate source of guaranteed income on a monthly, quarterly or annual basis. A single premium immediate annuity can pay out over a specified period of time, or it can be tied to your lifetime or two lifetimes (yours and your spouse's). Your payments will never decrease. Your income isn't tied to the market, so if the market does really well, or does poorly, your payment amount doesn't increase or decrease due to market fluctuation.

Create a plan that's right for you

Should annuities be part of your retirement plan? If so, which annuity is right for you? If you're interested in talking through your retirement goals, and whether annuities are right for you, contact your local Thrivent Financial representative today.

Read more: See how annuities helped strengthen one member's financial future.

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