While planning for your retirement, have you ever considered purchasing a financial product that provides guaranteed income for life? In this Expert Report, Phil Cannella shares some of the disadvantages of purchasing these products for the everyday American retiree.
“While Wall Street’s markets continue to go up and down with no guarantees of going forward, many concerned investors have been tempted by the idea of guaranteed income for life. Although it sounds desirable at first, guaranteed income products are not what they’re cracked up to be. When you purchase a guaranteed income product, the first thing that happens is your investment immediately becomes less liquid.
There is no principal to tap into when an emergency strikes and you need to make a lump sum withdrawal. With these contracts, your scheduled payout is a set specific amount based on your life expectancy. This amount does not keep up with inflation, which paints you into a corner later in life when your monthly income has less purchasing power than it did the day you signed the contract. Now, in most cases, the monthly income payments are structured to exceed your life expectancy, making it a whole lot less likely that you’ll ever receive back your initial investment amount before death.
Lastly, there is no legacy or estate planning with these guaranteed income products, because they’re meant to go away at your demise without leaving a dime to your heirs. It’s best to avoid a product sale whenever possible by utilizing a system of investments; however, with guaranteed income capabilities, you can mix and match vehicles that pay a lifetime income with others that are designed to grow principal back and still give you access or increases of income. Seek out a qualified retirement phase expert who can offer the best of both worlds and provide a legacy plan for your heirs guaranteed.”
Hear more stories and reports that will impact your financial future by visiting https://crashproofretirement.com/radio-show/ and by tuning into The Crash Proof Retirement® Radio Show, Saturdays at 11 AM and Sundays at 1 PM on Talk Radio 1210 WPHT.