Important Questions to Ask When Purchasing an Annuity
As more Americans take charge of planning for retirement, a growing number will consider an annuity as part of their strategy. Before you take this step, IRI suggests asking yourself the following questions:
- Am I purchasing an annuity to save for retirement, ensure that I have guaranteed lifetime retirement income, or both?
- When do I plan on taking income from the annuity?
- How much of my investable assets should I use to purchase an annuity?
- What does an annuity guarantee?
- What are the fees associated with variable annuities?
- What is my risk tolerance?