Are Annuities Still a Safe Investment?

Seniors can enter into a number of reliable investments from legitimate providers to help safeguard or augment their finances for retirement

. A retiree can get an annuity to safely protect his or her nest egg, although recent developments have raised questions about the viability of placing retirement assets in one.

Annuities come with guarantees, which make these one of the more stable ways to protect your retirement money. However, the security of your payouts is directly influenced by the financial might of the insurer that provides the annuity. Since many insurance carriers have experienced crises due to the recent economic downturn, the senior's otherwise stable investment in an annuity can be at risk.

Despite the lackluster performance of many companies that provide annuities (and some of the biggest international insurers needing government aid to stay afloat), seniors should still consider the annuity as a potential source of retirement income. The immediate and income annuity's special features allow you to obtain lifelong payments from your investment, making it a good addition to your portfolio. Since the risk levels are relatively higher today, retirees should still approach such investments with caution and careful scrutiny. Prior to getting your savings into an annuity, know what you're getting into, how to get out, and how to pick the best insurer for your money.

Annuities offer the senior investor many unique features that translate to flexible benefits, making annuities a valuable tool in planning your retirement. However, due to the high levels of risk that can be associated with the annuity, it is best to talk to your financial advisor to identify the best annuities and insurance carriers you should work with.

Are Annuities Still a Safe Investment?

By: Carina Smith

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