Guy McCord discusses determining if an annuity is a good fit for your retirement plan.
Listen to the interview on the Business Innovators Radio Network:
Regarding retirement planning, annuities can be a good option for many people. An annuity is a contract between someone and an insurance company where a person pays a lump sum or makes periodic payments in exchange for regular income payments during retirement. Annuities can provide a steady stream of income that can help people maintain their lifestyle during retirement and offer potential tax advantages.
Guy explained: “Before investing in an annuity, it’s important to understand the different types of annuities available and how they work. There are two primary types of annuities: fixed and variable. Fixed annuities provide guaranteed returns on investment based on interest rates set at the time of purchase. In contrast, variable annuities offer the potential for higher returns but also expose people to more market risk. It’s important to weigh the risks and benefits of each type of annuity before making a decision.”
He added: “Furthermore, it’s essential to consider all fees associated with the annuity before investing. Like any other investment, administrative costs, sales fees, and surrender charges are typically associated with an annuity that can reduce the potential returns from an investment. It’s important to research and understand all these costs before investing in an annuity.”
Finally, evaluating how an annuity fits into a person’s overall retirement plan is important. The income payments from an annuity should be considered part of supplemental income. So, suppose someone plans to rely on the income from an annuity to meet their retirement needs. In that case, it’s important to understand all the risks associated with investing in one and determine if it provides enough security for their retirement goals.
Investing in an annuity can be complicated and should not be taken lightly. It’s essential to research and speak with a financial advisor before deciding whether or not an annuity is right. With careful planning and consideration of risks and potential benefits, an annuity can be a great addition to a retirement plan.
About Guy McCord
Guy McCord lives in the Dallas/Ft. Worth area with his lovely wife of 30 years, Patricia, and their son, Andrew, who will soon be a senior in high school.
Growing up in Plano, Texas, his grandparents were his heroes. One of his grandfathers served in GermGermany’sArmy and received a Purple Heart. His other grandfather was a West Texas rancher and worked for 40 years as a rural mail carrier. Guy’s grandmothers were steadfast in their faith.
Guy has served in staffing as CMO, logistics, and commercial building maintenance as both a CFO and CEO. He has also served many small businesses in consulting.
Guy is a retired Texas rugby referee and serves Dallas County as Presiding Election Judge. After earning his MBA in 2007, he authored 7 articles. He supports the Monastery of the Infant Jesus of Prague and St. Joseph.
His faith is his foundation, and he lists Jesus, Mary, Joseph, his wife, his son, and his great friends among the most important things in his life.
By structuring client retirement money to minimize taxes, safeguard against market losses, and, allow for upside gains while allowing for lifetime income.
Learn More: https://guymccord.com/