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New-style annuity offers guaranteed income, access
Normcee
01-06-2008, 10:32 AM | Post #2473368
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New-style annuity offers guaranteed income, access
BY PETER KING
January 5, 2008
Boomers, do the math: 2008 minus 1946 equals Social Security.
Yes, the first boomers - those born in 1946 - turn 62 this year and become eligible to collect Social Security, albeit with reduced benefits. Retirement is no longer a hazy concept to be dealt with decades in the future.
What should you do with the money you've saved? Have you saved enough? A booklet from the U.S. Department of Labor's Employee Benefits Security Administration may help you plan.
"Savings Fitness: A Guide to Your Money and Your Financial Future" offers tips on how you can estimate your savings needs for retirement. It also offers advice on how to deal with financial setbacks and emergencies during retirement. There are sections aimed at the self-employed and women, who face special challenges to a secure retirement. Often, they have worked fewer years and earned less than men.
The 32-page booklet is available online at www.dol.gov /ebsa/pdf/savingsfitness.pdf. You also can order one for free by calling 866-444-EBSA (3272).
New-style annuity offers guaranteed income, and access if you need it
If you're considering buying an annuity, the number of choices can be overwhelming. And because so many types are available, it's hard to judge which, if any, is right for you.
A new kid on the annuity block is one that offers "guaranteed lifetime income"; it's aimed at older boomers and younger seniors. With these annuities, your account is invested in a stock and bond portfolio managed by the annuity company. The annuities promise a guaranteed lifetime income stream with the prospect your money will grow.
"Boomers don't want to cut back in retirement," says Rocco Carriero, senior financial adviser at Ameriprise in Southampton. "They want to spend more."
For clients who seek income growth but are worried about outliving their assets, Carriero recommends the SecureSource guaranteed lifetime withdrawal benefit annuity from RiverSource (riversource.com). This product allows investors to withdraw up to 6 percent of the principal annually, beginning at age 68. That income is guaranteed for as long as you live, no matter what happens to the amount in the account.
Other companies offering guaranteed lifetime income annuities include MetLife (metlife.com), Fidelity (fidelity.com) and John Hancock (johnhancock.com).
For the rest of the article - http://www.newsday.com/service....7684.story
Topics
Annuities
class
John Hancock
principal
target
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