Retirees frequently want to know how quickly they're able to get to their money in the event they need to cover incredible expenses such as a health care emergency, or a house or auto fix. This desire for assets may cause them to avoid annuities. However, when you are aware of annuities pros and cons, you'll see that annuities may possibly provide access to money that can accommodate numerous circumstances. Let's take a look at how an average annuity company provides liquidity
For instance, let's say you need to take out cash before the annuity matures. Nearly every annuity company will let you remove part of your account's value every year without paying a withdrawal charge. This is usually 10% annually. Once the surrender fee period expires, you'll have the ability to withdraw as much as you need without paying any fines to the issuer. Most any annuity company allows other withdrawals, as explained in the next paragraph, thereby positively impacting the net benefits of annuities.
Assume you are worried about income for future long-term care attention or a medical emergency? Most every annuity company will give you penalty-free usage of your funds if you need to go to a nursing home or even come down with a terminal illness.
And how about annuity company income?
If your situation is altered and you need regular income from a deferred annuity, you will have the opportunity to annuitize the contract and obtain payments for a fixed time period. You can also get repayments that will last your current lifetime or even as long as your spouse lives. . The ability to annuitize as soon as the first 12 months of the contract is a very favorable feature for those who may be in need of Medicaid support (see Medicaid Annuities). Check with you annuity company for more details on all of the ways to get liquidity from the contract.
What happens if you die?
Will your own survivor get the cash he or she might need? The annuity company will immediately pay out the account's value for your designated beneficiary without surrender charges, fees and penalties, or probate fees.
So before you decide that annuities don't offer the ease of access which you need to your investments, look at the complete picture associated with annuity company liquidity provisions. Examine what you need this money for-what scenarios would you consider probable emergencies. It's possible that a good annuity company has just the right choice for you.