3 Reason to Consider Annuities in Your Retirement Portfolio
The annuity is often a misunderstood piece of a well-developed financial plan. Annuities are insurance contracts that transfer the risk of outliving your assets to an insurer, who in return provides a stream of income for life or a specified fixed period. Annuities give investors the opportunity to create a stable income stream from their accumulated assets -- that is, the ability to annuitize their retirement assets.
In many cases, annuities are understandably written off as complicated, expensive, and unnecessary. Typically, these instruments are accompanied by high fees, confusing riders, and everyone's favorite: the pushy salesman. While I don't want to be convinced to buy an annuity, I do find that it's important to understand what annuities are and the instances in which they may be appropriate. Equipping yourself with the right knowledge can help you become a more informed buyer, and avoid making decisions based on the poetry of a clever cold caller.
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Source Fool.com
