We’ve talked about annuities a few times on the site but a few people have asked me recently about where to buy annuities. Always looking to keep our readers happy, we found company that provides free annuity quotes so you could get the process started and also provide some background on annuities.

Click Here For a Free Annuity Quote (or read more about annuities below)

If you would like to know more about annuities before you get a free quote, let’s discuss them a little. For those of you who don’t know annuities are an investment contract between you and an insurance company that provides you investment income for life. They are especially attractive to investors these days because fixed annuities provide a guaranteed rate of return and guaranteed monthly income throughout retirement.

So how do annuities work exactly?

When you buy an annuity you begin by making payments to the annuity provider. You can do this either all at once or over a period of time with regular payments, this is known as the pay-in phase. Once you complete your payments the annuity company will begin paying you back monthly with a specified rate of return included.

There are two types of returns with annuities, fixed and variable. Fixed annuities are appropriately named as they have a fixed rate, say 7% on your money that will be paid to you. Variable annuities on the other hand are tied to another investment like stocks, bonds or mutual funds and go up and down depending on their performance. The advantage here is taking advantage of a strong market, but these days fixed rate annuities are certainly more popular.

The major advantage of annuities is that they are tax deferred, meaning that you don’t pay taxes on your investment until you begin receiving payments. Of that payment amount only the return on your investment is taxed (at least at the time of this writing) so your initial investment doesn’t count there. It is also important to note that unlike other investments annuities are taxed at a regular investment rate, as opposed to a capital gains rate.

All in all, annuities are a very attractive investment option for people looking for tax advantages and security. Regular payments for life are a really good thing these days with the downfall of social security looming down the horizon and regular secure income is something very attractive.

To get more information on how to buy an annuity click here.

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2. Guaranteed Income Annuity: Safe Retirement Income
3. Cashing In Retirement: Should I Sell My Annuity Payments?

No matter what age you are you should be planning to save for retirement. When you’re in your 20’s retirement seems like light years away… why should you save for something that wont come for a while? Well the answer for that is to make it easier on yourself down the line so you aren’t struggling like many retirees today, and so you can kick back and enjoy your golden years a few years early. So how do you begin saving for retirement exactly? Well there are a number of strategies out there but depending on who you are, where you live, how many kids you have etc it could change. Instead lets look at a few general retirement saving tips to help you put together your own strategy.

First, start with a retirement date in mind. Even though it may change, try to have a date in mind of when you think you could retire. The reason you want to do this is because you need to know two things… the number of retirement years you will need covered and how many years you have to save that amount. By having a goal in mind, even if it may change, you make this planning much easier.

Next, determine how much money you will need to live comfortably once you retire. Now I know half of you are thinking “as much as possible” but try to put together a realistic look at what amount of money annually you will need to live comfortably. Try not to aim for the minimum, that way you give yourself some wiggle room should your investments go down the tubes.

Now that you know how much you may need, devise a savings and investing plan to meet your goals. Obviously you should save and invest as much money as possible for your retirement, but how much money is enough? Well in steps one and two we tried to identify the total amount of money you will need to live comfortably, now you need to figure out what combination of savings and investment vehicles will get you to that number.

Now if you start when you are younger you can take a much safer route as a small percentage rate of return every year really compounds well over 30 years, but if you started late you might need to be more aggressive to make up ground. Conversely if you are younger and decide to be aggressive you will have more time to make up any losses you incur on the way.

The type of investment depends on your personal financial situation so I won’t recommend any here but there are lots of options ranging from simple savings accounts to tax deferred investment accounts to mutual funds tailored for retirement funding. With so many options available there should be no reason you can’t find one that is right for your retirement goals.

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1. Simple Retirement Planning: How Much Should I Save For Retirement?
2. Retirement Plan Basics: How Much Money Do I Need To Retire?
3. How To Retire Early: Preparing For Retirement

Guaranteed Income Annuity: Safe Retirement Income

If you’ve ever wondered if there was a better option than for retirement than the usual suspects, you should do yourself a favor and look into guaranteed income annuities. Annuities are a great option for retirement, but sadly most people don’t realize it without having all of the annuities pros and cons explained to them first. With those doubts of whether there will be money left in Social Security or not when you retire, and with people living longer all retirement options need to be explored.

Annuities provide you with security and an income that will help your when your retired. Money that can help to pay the monthly bills or anything else that you may have to cover. The extra amounts that may not be covered by your pension fund or other money you have saved up for retirement.

Annuities are a great way that you will be able to make sure that each month you will have guaranteed money coming in. These guaranteed income annuities are set up by a life insurance company. There are different ways that you can purchase one of these annuities.

You can purchase income annuities through an IRA, with a 401K direct rollover or a 403b plan, checking accounts, savings accounts, lump sum purchase, savings annuities, or even with the thrift savings plan. Another way that you can look at these are as a personal pension plan that you have set up.

You will be able to have the income set for as long as you want it to last, most people will go with the option that will provide a lifetime income. Set up the amount of money that you want to have come each month, and how you want to be paid. You don’t need to be paid monthly, but can set it up to be paid to you quarterly or another way.

When you pick a company to buy an annuity from, make sure that your picking a company that is strong, especially in this economy. Pick those companies that have showed good success in the past, and also make sure you look online and research that company.

Even though they’re clearly not the most popular retirement option, many more people are considering this option as one to help ensure they will be able to afford retirement. It’s a fantastic way to make sure that you have money that will be available to you when you’re retired.

Filling that possible void that might come up when you are falling short with the money you’ve saved up already. Don’t forget that you should begin saving for retirement as early as you can. Even those younger people should start placing money aside to ensure a safe and happy retirement and guaranteed income annuities are a great way to get started.

© Guaranteed Income Annuity: Safe Retirement Income

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2. Retirement Income Strategies: Investing In A Bad Economy
3. Should You Buy Annuities?

How To Retire Early: Preparing For Retirement

These days the economy has reached new lows and even though many of us lost a significant part of our retirement investment there is still a very large number of us who want to know how to retire early. Many of us believe that these days the only way to achieve early retirement is to win the lottery or inherit a large amount of money, but even in a down economy retiring early isn’t impossible, provided you planned well enough in advance.

For those of you looking to plan an early retirement strategy, there are a few things you should understand. First, you need to put away every unspent dollar that you can. Most people assume that saving for early retirement just means sticking away a set amount every month, but if you are serious about retiring early then you really need to make some sacrifices. That means instead of buying that extra latte or better yet going on an expensive vacation, find ways to cut back your spending and make sure that money gets put in a savings account or better yet a retirement account.

The next thing you need to do to ensure your early retire plan goes smoothly is to have a plan. I know that sounds redundant but having an early retirement plan means more than just wanting to retire early, you need to have a retirement investment strategy. Meet with a financial planner or get a reliable retirement planning software and map out exactly what you need to invest in and how much you will have when you plan to retire.

Perhaps the most important step you can take in how to retire early is to determine how much money you will need to get you through your retirement. Nobody likes to plan their own demise, but you need to make sure you account for your life expectancy accordingly. For example if you live to 100 years old you will need a lot more than if you only plan on living until you’re 70. Since nobody can tell the future that we know of, you really need to make sure you plan for the longest scenario to ensure you aren’t scrounging for money in your late years. While this sounds a bit morbid it’s perhaps the most important step you can take in your retirement planning.

All in all, planning for early retirement isn’t impossible, but you really need to make sure you have a good plan. Many of us want to spend money on luxuries but if retiring early is important to you then you need to understand that you must make sacrifices. If you want to know how to retire early, plan, plan and then plan some more and you can kick back and enjoy your golden years.

© How To Retire Early: Preparing For Retirement

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Retirement Plan Basics: How Much Money Do I Need To Retire?

Something many people are asking, how much money do I need to retire? Yep especially with the way it looks for social security, by the time young people are ready for retirement that well will most likely have run dry so you had better make sure that you have enough retirement investments to get you by before it’s too late.

You can also buy software that will help you find out just how you’re doing with your investments and tell you whether you can retire by the age you want. For many it would be great to retire long before age 60, but for many of us it may not be a realistic option.

It will not only depend on how much money you have saved for your retirement investments currently, but also what kind of lifestyle you live. If you’re one who is always buying those new gadgets the day they come out, you may have to save up more money to retire, or cut back on those purchases when you do retire.

Make sure that you pay off card debt as well before you invest a single dollar in the stock market or mutual funds. Banks issue credit cards to you for a reason, and that is because they make money on you having an outstanding balance and paying for interest. Unless you have an incredibly low rate on your credit card you likely wont make as much return as you would just by paying the balances down. If you have a lot of debt you can also try to negotiate credit card debt with the credit card issuer to see if you can cut down your balances faster, which will definitely save you from compounding interest in the long run.

Now with these averages that have been listed, these are just suggestions of how much money you need to retire. If you don’t have these amounts don’t worry, especially if you’re several years away from even thinking of retirement.

For those people who are currently between the ages of 35 and 44 a good estimate of the amount you should have saved is approximately $22,470, while people between ages 45 and 54 should aim for around $44,000 in the bank. When you reach the age of 55, you should have closer to $69,000 set aside already.

Again these are just estimates and averages, and usually these numbers will change as inflation takes hold, so you may want to continue looking at the numbers as you get closer to retirement age. Consider the options of investing in a guaranteed income annuity to help so that you will have money coming in when you retire.

If you want to you can always hire a financial planner who may assist you with setting up other retirement investments to help out. But that is going to cost money to do, so look at other ways that you may be able to find some retirement investments on your own.

Don’t worry if you don’t have those amounts as of yet, but work towards saving more money up. Look into many retirement investment options that are available to you before you think you can’t retire by the age that you want.

© Retirement Plan Basics: How Much Money Do I Need To Retire?

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Retirement Income Planning: How to Invest Without a Broker

If you aren’t too keen on the idea of paying an investment advisor big bucks to help you chart your retirement income future, then maybe a retirement income planning computer program is what you need to help you figure out just how much money you need to make to retire. One of the best ways how to invest without a broker is to have an affordable computer program do it for you, but one of the problems is trying to figure out which planning software is right for you since there are so many out there.

Most of these retirement income planning packages are very simple to use, all you need is to put your information into the required areas, and it will analyze them. The programs analyze your financial history like how much money you have saved and what you have invested in previously. Once this is all compiled it will make recommendations on what you should invest in for the future according to whatever age you plan on retiring by. For many people this is a great way to feel better about how much money they have and how much money they will need for retirement.

Some income planning packages will even offer you the ability to account for “other” details that may happen with a retirement scenario such as losing a job or suffering an illness that keeps you out for work for a long period of time. These things could be something that comes up before retirement or after you’ve retired.

Some of us will find we can retire earlier than expected while others will need to work a bit longer than they were hoping but it does almost all that a broker or financial planner would do for you but the process overall will only take a few minutes of your time and you can do it from the comfort of your own home. It really all depends on what retirement income planning program you are using and what the required inputs are to calculate and plan your retirement path.

As mentioned the biggest benefit is that it’s a lot easier and less expensive than looking for and hiring a financial planner to assist you in this process. And you don’t have to divulge all your information to someone else in this manner either. Your information remains on your computer in the safety of your home. You can update your financial planning scenarios as often as you like to see how your outlook comes out as you change some of the input factors and the best part is an answer is only a few minutes away.

One of the problems working with a broker is that they often times try to steer you towards an investment that you’re not even interested in but they get bonuses for. Retirement income planning packages will allow you to figure out exactly what is needed and you have a goal to work towards and it will do it without bias, without fees, and without any pressure to invest a certain way. Many of the choices that you have for retirement planning soft ware aren’t even that expensive.

Give yourself the knowledge of knowing just how much you will need to have saved up for retirement today. Income planning software provides you with a quick and easy process that will have many people being able to relax knowing that their retirement is well in hand. Or letting you know what you have to do before you can retire.

Don’t waste your money on hiring a financial planner, investing without a broker is the way to go. Instead get one of these retirement income planning programs that are out there. Compare the different options and figure out what you need and what you can get for the best price.

© Retirement Income Planning: How to Invest Without a Broker

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Cashing In Retirement: Should I Sell My Annuity Payments?

Lets say I am in some sort of financial trouble and I don’t know how to get out of it. If I have annuity payments that are just not working for me anymore and that I cannot wait for them then I might need to sell my annuity payments. It is easier than you think actually and all I need to do is find a company that will buy them from me. These companies take my outstanding payments over and then pay me out in a lump sum of cash for them.

This means that instead of waiting for another few years until my term is complete, I can sell my annuity and get paid out immediately. This is very helpful if you happen to get into a situation where you need the cash urgently for personal bills, investments or otherwise.

The decision to resort to sell my annuity payments should be a serious decision and should only be as a last resort, but if I have suddenly been involved in an accident or diagnosed with an illness and I need to pay your medical bills, then you can get my money.

If there are other circumstances such as that I may have to pay for my child’s education or anything else, I can at least relax knowing you will get the money in your guaranteed income annuity instead of having to wait for it. Another great thing about doing this is that I don’t have to sell my annuity payments. I can sell a share of them or any partial annuity amounts.

When you start looking into the transfer of the annuity you will find that there could be a fee involved, but this is normally minimal and the amount can differ depending on the state you live in and what company I can use to sell my annuity payments.

When I want to sell my annuity payments the best companies to look for are cash flow factoring industry experts. These are the people that can help me. I will first check to see how long they have been around for to make sure that I will get paid out when they tell me I will and that everything will go smoothly.

Many companies offer a free quote when you want to get paid out for the annuity, so I will be able to make a good decision based on seeing the results and amount I will receive. This can all depend on the annuity timeframe that I have and also where I live, but generally I will be able to benefit from my decision to sell my annuity payments.

© Cashing In Retirement: Should I Sell My Annuity Payments?

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401k Direct Rollover: How to Rollover a 401k

The 401k investment plan is very common in the United States, and a large part of the plan is the 401K direct rollover. This package allows every employee to direct a certain portion of their salary into a pension fund which allows them to have money when they retire. The added benefit, is that their employer has the option of making contribution to their plan which is tax free.

If an employee change jobs, they have several options relating to the 401k direct rollover. The direct IRA rollover means that contributions are held in an employee’s retirement account that can be transferred directly in an Individual Retirement Account. The money does not go directly into the hands of the employee, because the previous employer wires it directly into the former employee’s personal account. There are several benefits to this method such as no penalties, and the taxes are not withheld.

If a former employee has stocks from the previous employer’s company, there are two ways the contributions can be handled. The first, is the former employee can transfer their stocks directly into their Individual Retirement Account without the stocks being liquidated. The second, is that the former employee has the option of selling the stocks, and paying the rollover into their personal account within a 60 day period. If the former employee fails to do this within the 60 day period, they must pay taxes on that money.

Employees have the option of moving their exiting 401k plan to their new employer, if they accept the 401k direct rollover. This only works if the employee has a new job in place before leaving their old one. Employees should take the time to check out the new employer’s investment options, then decide which is the best option for them.

The last option is to cash in funds that are held in the 401k package. This can be a very costly move because employer’s are legally bound to withhold 20% of the funds for tax purposes. Employees would also have to pay income tax, plus a 10% penalty for taking out the cash before they retire.

The plan known as the 401k direct rollover is not well known, but has many benefits. First, employees can contribute up to 100% of the first $15,500 during any year. They can make contributions, or deduct a payment up to 25% over the initial amount, whichever they choose.

401k Direct Rollover: How to Rollover a 401k

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Retirement Income Strategies: Investing In A Bad Economy

In order to maintain their standard of living, older homeowners are starting to convert their home equity to monthly income. This is a relative new concept that has become increasingly popular with the development of reverse mortgages. Financial professionals are also beginning to look into different retirement strategies in order to increase income. Today there is a three tiered foundation consisting of savings, pensions, and social security.

Recent trends have indicated that this conventional approach has become less effective. The savings rate among most Americans has significantly declined since the 1980’s, reaching its lowest level in 2004. This is the lowest level since the Great Depression, however, recently there has been a slight increase. To compound these shortfalls is the decline of certain benefit plans and without them most families are left without retirement strategies that are sufficient enough to get them by when they stop working. This leaves most Americans to face a future with less income for retirement.

Due to the rising cost of living, many older Americans are finding it harder to make ends meet. Researchers have estimated that approximately 78% of older Americans do not have the proper resources to sustain them in their retirement years. Baby Boomers are also concerned with having the ability to maintain their standard of living during their retirement years. Retirement strategies for older workers who will not have adequate retirement income, or an uncertain source of income such as a defined benefit plan, will be using their home equity to pay for their retirement.

Another option for most older homeowners in order to ensure retirement income, will be to buy a “longevity” annuity using their savings. In combination with their home equity, they will be able to fill financial gaps using their home equity, until they start receiving annuity payments. Longevity annuities only require a small investment unlike immediate annuity, because they do not start paying out until after the age of 80 or 85. This is among the best retirement strategies for older Americans who are concerned that buying an immediate annuity will leave them with insufficient income for meeting unexpected expenses, or to leave a bequest. Consumers need to carefully examine the fee schedule associated with longevity annuities since the can be very expensive.

The best options for retirement strategies are the ones that reduce stress, are the safest options, do not require much on the part of the homeowner, and are the easiest to accomplish. By using the equity in a home and not using available savings or other resources, homeowners can have the best of both worlds.

Retirement Income Strategies: Investing In A Bad Economy

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Simple Retirement Planning: How Much Should I Save For Retirement?

Many people ask what the average retirement savings should be when calculating the amount of money you will need to retire. You can get software that will help you figure out just how much you may need when you want to retire. Some really even provide you with the year with current investments that you will be able to retire at.

You can also contact a financial planner who can assist you in this process. But with products that don’t cost near as much, you may want to head another way to figure out the money you need to retire. Something that everyone hopes to do sooner in their lives than age 65.

However, since the economy isn’t the best you may be delayed in retiring, and well we all know that social security is most likely going to go broke. But what about those other investments that you have and how should they factor in to the average retirement savings.

Things that will help you continue to have an income besides your social security, like annuities may be considered. The information here was provided by data that you can also find online. Showing the data doesn’t mean that this is something you should base all your information on.

Remember that these are averages too, and you shouldn’t worry if you’re below the average savings amounts. This information provided will not again be something that is cut into stone.

Averages for people ages 35 to 44 you should have a significant amount of savings, while for ages 45 to 54 you should be around double that. Moving up to the next level are ages 55 to 64 with around three times as much, and finally from ages 65 to 75 you should have enough to survive for some time.

As with before if your above average don’t think you can necessarily take it easy. Because times will change, and those amounts could easily change as well. No one really knows what’s going to happen tomorrow.

These are strictly average amounts that you will want to have in your retirement fund or invested towards retirement. If you have a chance to invest more through other ways, do so, because you can live a lot easier with more money saved up towards retirement.

Again look into retirement calculation programs that are out there that will assist you with finding out just how much you need to save up before retirement. If you’re getting closer to an age that you want to retire by, begin looking at other ways to get money placed aside that you will be able to use to help ensure you have the right average retirement savings to get you by the rest of your life.

Simple Retirement Planning: How Much Should I Save For Retirement?

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