SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Beth A. Botti, CFP®, ChFC, CLU, CDFA™
Financial Consultant
California Insurance License #0G24537
612 Wheelers Farms Road, Milford, CT 06460
Phone: 203-877-6556 Ext. 169
Fax: 203-301-0736
Email: beth.botti@equitable.com
September/October 2021
Ladder Annuities for Steady Income
Are you seeking an investment that provides guaranteed income in retirement? You might want to consider an immediate annuity.* With an immediate annuity, you receive fixed payouts over a set number of years in exchange for an initial lump-sum payment.
Investing a large portion of your retirement savings in an annuity when interest rates are low may not seem like a smart move. However, you may be able to minimize the risk of low returns and take advantage of any rise in interest rates that occurs by laddering annuities.
The Laddering Strategy
The laddering strategy involves purchasing immediate annuities over a number of years. So, instead of spending your money on a single annuity that locks you into a lifetime interest rate, you invest in multiple annuities over time. You might buy one annuity a year for four years or an annuity every three years for 12 years, etc.You can also ladder annuities based on the start dates of when you’ll begin receiving the payments.
Laddering Benefits
Annuity payouts are based on the amount of money invested, the prevailing interest rate and the recipient’s life expectancy. So, the older you are when you begin receiving payments, the larger those payments will likely to be. And, if interest rates are higher in later years, you could benefit from having used a laddering strategy.The Downsides
Investing a large sum in immediate annuities means you’ll no longer have access to those funds. That’s because early surrender of an annuity can trigger various fees that can be costly. So, if you have an unanticipated expense in the future and need cash, be sure to have an emergency fund so you do not have to tap your annuity.It’s also important to understand that unless the annuity is a joint lifetime annuity or includes a survivor payout, annuity payments stop at the owner’s death.
Food for Thought
If the security of having a guaranteed income appeals to you, review laddering strategies with your financial professional.*Immediate fixed annuity contracts, annuitants receive a fixed income stream based, in part, on the interest rate guarantee at the time of purchase. Annuity guarantees are backed solely by the claims-paying ability of the issuing life insurance company.
GE-3588398(5/21)(Exp.5/23)
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. Your connection to this website does not necessarily indicate that the sender is able to transact business in your state. The information in this website is not investment or securities advice and does not constitute an offer. For more information about Equitable Advisors, LLC you may visit https://equitable.com/crs to review the firm's Relationship Summary for Retail Investors and General Conflicts of Interest Disclosure.
GE-6572038.1 (4/24)(Exp. 4/26)
CFP®, and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
www.equitable.com
Check the background of this investment professional on FINRA's BrokerCheck
Equitable Advisors, LLC and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.