Do you wish you could put aside money now that would earn a decent rate of return and provide a set income starting at some point in your future? You may be wishing for an annuity.
While an annuity is designed to provide a steady lifetime income payment, typically for retirement, another advantage is its easily accessible funds. (It is not uncommon for a withdrawal fee to be charged in the earlier years, so be sure to check your personal annuity for specific drawdown conditions.)
An annuity is a good addition to a well-rounded income protection portfolio. You can start one with cash you have saved, or you can use money you are rolling over from another retirement account. If you begin your annuity when you are young, it will build over time, and you can add to most annuities along the way to increase your payments when you begin drawing down the account.
Some annuities are based on the stock market’s performance, so you could lose as well as gain. These might not guarantee any income, but could pay out handsomely if the stock market does well. Make sure your financial advisor understands the level of risk you are comfortable with. And mention guaranteed income if that is your goal.