In this falling economy, everyone is in need of extra funds. You are always in look out for benefits from various sources and guaranteed incomes are one of the chief sources of becoming financially stable. More and more retirees are opting for financial products which offer guaranteed incomes. However, while opting for these products, keep in mind that there are risks involved as well.
Experts say that while annuities are a very good option for getting guaranteed incomes, one should also be aware of the risks involved in the annuities. So while taking some annuity, act prudently and if possible, take some advice from your financial expert. While the annuities offer guaranteed incomes, they are complicated and are at times prone to the market swings.
Most of the financial products which offer guaranteed income come with fees. They add to the expenditure of the retirees and the aged. According to some experts, “these products attempt to serve competing objectives, growth of principal and guaranteed principal or income levels, and, as a result, end up shortchanging the individual”
There is another factor or risk that is involved. If you are trying to move your annuity, known as a 1035 exchange, you may be trapped in red tape. The process can be very lengthy and involves lots of procedures. You may also end up losing lots of money in the process.