There can be a lot of confusion when considering investing in an annuity.
To simplify things for my clients, I often like to explain annuities as being the opposite of life insurance.
You buy life insurance to protect your family in case you pass away prematurely. This provides them with a lump sum payment to replace the money you would have otherwise earned during your lifetime.
Alternatively, you might buy an annuity to protect against living too long. Most annuities make guaranteed monthly payments for as long as you live, and this stream of income can be especially beneficial if you outlive your other assets and investments.
Please note that Reliant Wealth Management does not sell annuities or life insurance for commissions. We only advise our clients on whether or not they should consider them.
Tim Plachta, CFP® owns and operates Reliant Wealth Management and Reliant Consulting Partners. He works primarily with small business owners to help them increase profit, reduce their workload (so they can relax more), and invest enough of their earnings to achieve financial independence.