Essay on Getting a Steady Income After Retirement

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Getting a Steady Income After Retirement Some people cannot wait till retirement. The prospect of taking a break after 40 years of working is very tempting indeed. Everybody envisions sitting out on the backyard porch sipping tea, working on our rose bush and other non-stressful activities. Unfortunately, this is only half the story. Admittedly, retirees do enjoy non-stressful activities. However, there are also matters that affect them because retirees do not have a steady stream of income if they do not make plans for it. Ideally, there should be some form of forced savings while there is a steady stream of income. When they retire, they can draw on this form of savings to allow them to continue with a comfortable lifestyle. Now what…show more content…
What amount will be needed in order to give you a comfortable lifestyle? How much risk should you take with your annuity? There are a few types of annuities. The different types of annuities affect the timing of the payout, the investment type of the annuity and payouts related to health and death. First, the decision needs to be made whether you want to receive payments from the institution immediately or at a later date upon investing. If you opt to receive payments immediately, the payments will be given once you start investing. Depending on the annuity rate, this will affect the sum that you will be receiving. If you opt to receive payments at a later stage, the payments may be higher. Next you can decide whether to invest in a fixed or variable annuity. Having a fixed variable will lower your risk while at the same time having a lower return. This is because the annuity is fixed at a specified rate irregardless of external factors such as inflation and government regulations. In having a variable annuity, you will be getting a higher return although you will be exposed to a higher element of risk. Variable annuities are mostly linked to various sources including the stock exchange. If the stock exchange performs well, you will invariably get a higher return. However, this is true if the reverse should happen. In order to obtain the best annuity rates, a lot of decisions need to be made including selecting the correct institution. Nevertheless, you should

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