The Lifetime Annuity Plan A Smart Choice For The Retirees
Inflation has been one of the most burning problems nowadays
. Many people are not sure whether they have enough provision after their retirement to spend the rest of their life without any financial problems. A well-thought lifetime annuity plan can certainly help their cause.This lifetime annuity Plan can guarantee healthy monthly earnings for the persons who are a little or more worried about their future after their retirement. First of all, they would have to wisely calculate the monthly pay they are wished have after they retire.
Studies show that spending more than 4% of your retirement money each year takes you to be penniless if you live as long as 30 years or more after your retirement. For example, if you have $100,000 after your retirement, you would get under $4,000 each year to live on. So, you would have to make the choice. An Income Annuity Plan can definitely take you out of this hitch. It does not bother about how many days you live after your retirement, you can be assured for the rest of your life of getting your lifetime annuity.
Dont forget to mention a nominee when you decide to invest your money in an insurance company, because if you die soon after your investment without mentioning a nominee, then none of your family is going to receive the payments. Although they would have to pay a much higher premium than what you are supposed to. So, if you are a clever guy, make sure you live long after your retirement to extract maximum amount of money out of your lifetime annuity Plan.
It is not mandatory to invest the whole part of your money, because once you invest it, you can not get it back. Also an early death of yours would not cause a problem for your family members as they can pay the higher premium even after your death out of your savings.
Finally, this takes us to the point of annuity rates. In the current market, annuity rates has been a real problem. When you have to pay it, its getting higher and higher day by day. And when you are on the receiving side, it goes on the other way. For instance, a person investing $100,000 after his retirement, would have got a yearly amount of $5,000 at the rate of 5% few years back, but now he would only get a mere $1,500 at a unthinkable rate of just 1.5% only. So, its better to invest a lump sum of your retirement money at a time not which wont bother you sticking your head in to the current annuity rates, or vulnerable stock market as you will be receiving a fixed rate of income every year whatever the annuity rates are.
Considering tax purposes, Lifetime Annuity Payments leaves us on to the fact that around 10,000 of the yearly payment is deemed as a return of the investors own money and is liable to be exempted from the Income Tax. In this case, people paying higher rate of Income Tax could be considered as basic level tax-payers while only 5,000 is counted as income.
So, make the right choice. If you have any doubt about your standard of livelihood after your retirement, start saving money out of your income which can easily take you in to the Lifetime Annuity Plan right after your retirement.
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