Retirement Tip of the Week: Before jumping into an annuity, or ignoring them completely, look at the variety of options available and determine whether it actually might make sense for your retirement goals and income needs.
Dariusz Godlewski, president of Financial Wealth Alliance, was featured in the May 19, 2021 article on MarketWatch entitled “Annuities — Do you love them or hate them?” Here are some of his comments:
“The first mistake is that people are trying to compare annuities to the stock market and mutual funds,” said Dariusz Godlewski, president of Financial Wealth Alliance. “Don’t compare them to stocks and mutual funds but to safer investments, like bonds.” Many advisers are using indexed annuities as a way to replace bonds in this low-interest rate environment, he said.
Because annuities typically have long investment time frames, such as 10 years or more, people are hesitant to commit, Godlewski said. But they shouldn’t lock in most of their money, he added. “That is the key,” he said. Investors should have money set aside that is liquid, meaning it’s easily accessible. Annuities should be treated as one piece of retirement income, just like any other investment would be. “It is just part of the portfolio, like anything else.”
Read the entire article here:
https://www.marketwatch.com/story/annuities-do-you-love-them-or-hate-them-11621380436