Why Do I Need Annuity?

Q. Why do I need to consider an annuity product?

A. Annuity is a retirement savings vehicle for people to accumulate retirement assets tax-free and create guaranteed lifetime income stream.  

There are many retirement savings vehicles - 

• Regular bank savings 
• CDs
• Stocks
• Bonds
• 401(k)
• Cash value insurance
• Social security benefits
• Annuities
• etc. 

But most of them either have literally no risk and therefore negligible returns, or good returns but with fair amount of risks.

At the same time, people are living longer lives, lose regular income during retirement time, and for younger generations, social security payments because less secure.

Combining the above two considerations, the unique annuity feature of reasonable rate of return and guaranteed lifetime income becomes very attractive for most retirees or people who prepare for retirements.