Benefits of an Annuity in 2021

May 2, 2021

Benefits of an Annuity in 2021

FUN FACT: Exercising more and saving money were the most popular New Year’s resolutions in 2020. While personal fitness may not be our area of expertise, KSKJ Life can help you make the most out of your hard-earned money and feel secure in your finances. An annuity is an easy, low-risk way to achieve this, even during an unpredictable economy. This financial product is primarily used as an income stream for retirees to minimize the risk of outliving their savings, but it can also be used for fulfilling those items on your bucket list, like travel and home improvements. As we enter the new year, now is the perfect time to consider an annuity and gain that financial stabilization to make 2021 your best financial year yet.

In the midst of all the uncertainty in the world these days, safety and security are top priorities. We all want to make the most out of our hard-earned money, while still feeling secure in our finances. An annuity is an easy, low-risk way to achieve this during the global pandemic and unpredictable economy. This financial product is primarily used as an income stream for retirees to minimize the risk of outliving their savings, but it can also be used for fulfilling those items on your bucket list like travel and home improvements. Although the COVID-19 pandemic and its implications can be nerve-racking, now is the perfect time to consider an annuity and gain that financial stabilization. Here are 4 reasons you should consider an annuity today:

1. Security in Times of Uncertainty
Annuities can offer certainty in an uncertain world. They provide guaranteed interest rates and guaranteed income for as long as you choose – for a certain period of time or for life. Having an annuity can assure that your money is safe and relieve the uneasiness of the unknown.

2. Competitive Rates that are Hard to Beat
They typically offer a higher interest rate than a bank CD. According to the FDIC.com website, the national average bank CD rate for a 12-month CD as of November 2020 is 0.18%. A benefit to getting an annuity is that they often have a higher interest rate than a bank CD, giving you a better return on your money.

3. Flexibility that’s Hard to Find
Annuities offer a variety of contribution and payout options, giving you the opportunity to choose what works best for you. They can also offer flexible access to funds with certain free withdrawal options. With our lives, jobs, and finances shifting so much these days, having that flexibility to withdraw funds if needed can make a world of difference.

4. Less Risk, More Reward
One thing you do not want to jeopardize during these times is your family’s financial security. Compared with investments such as stocks and bonds, annuities are a much lower risk. Their fixed rates and guaranteed income make them a safer option for you and your finances.