1) Longevity Risk

One of the top fears cited by retirees and pre-retirees consistently is the fear that they'll run out of money.  Every year Transamerica does a study that confirms this.  This is for good reason.  People are living longer and things are more expensive.  An annuity by nature pays you while you're living, for as long as you live.  You have a guaranteed stream of income for as long as you live!  This is why living a healthy lifestyle literally pays!

What if you retired in 2007/2008, or 2021/2022?  How can you possibly know when the next stock market correction, or crash will be?  If that happens early on in your retirement, you run the risk of never recovering, and in turn accelerating the decline of your account.  An annuity solves for that by eliminating any risk of market loss.  Imagine not losing money.  The worst you can do is have no gain.  Market crash? You get 0% returns that year instead of -20% or more.  Win by not losing and eliminate the sequence of returns risk! 

We all know how expensive life has gotten and it doesn't seem to be slowing down.  If you need your money to last 20 or 30 years, you'll need to make sure your purchasing power stays strong and keeps up with inflation.  If you need $5k per month today; what could that look like in 15, 20, or 30 years?  That's why we use properly structured annuity products that allow for the income to increase every year, keeping your purchasing power strong years into the future.