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One of the BIGGEST financial decisions anyone can make is evaluating giving up a lump-sum of cash in exchange for a guaranteed income stream.⁣⁣
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It’s crucial to evaluate these options from a mathematical standpoint — making assumptions for how long you anticipate living and the income stream you receive along the way.⁣⁣
⁣⁣
Only then, can you determine what the different annualized rates of return would be based on how long the person lives.⁣⁣
⁣⁣
Annuities become more valuable the longer someone lives. This is the tradeoff the insurance company makes when providing an income stream in exchange for a lump-sum payment (annuity options vary substantially in complexity).⁣⁣
⁣⁣
Especially if you’re purchasing an annuity from a third party, you want to do your due diligence to make sure that the annuity is not just suitable, but is also in your best interest.⁣⁣
⁣⁣
In your best interest, meaning you’ve done a financial planning analysis factoring in your needs and goals.⁣⁣
⁣⁣
Then you can determine if the annuity option is really the best option — all factors considered.⁣⁣
⁣⁣
Food for thought.⁣⁣

Scroll down for the full video available on Instagram.

As always, to learn more about our financial planning and investing philosophy, be sure to check out the DO MORE WITH YOUR MONEY podcast, available on Apple PodcastsSpotify, and YouTube.

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⁣ One of the BIGGEST financial decisions anyone can make is evaluating giving up a lump-sum of cash in exchange for a guaranteed income stream.⁣⁣ ⁣⁣ It’s crucial to evaluate these options from a mathematical standpoint — making assumptions for how long you anticipate living and the income stream you receive along the way.⁣⁣ ⁣⁣ Only then, can you determine what the different annualized rates of return would be based on how long the person lives.⁣⁣ ⁣⁣ Annuities become more valuable the longer someone lives. This is the tradeoff the insurance company makes when providing an income stream in exchange for a lump-sum payment (annuity options vary substantially in complexity).⁣⁣ ⁣⁣ Especially if you’re purchasing an annuity from a third party, you want to do your due diligence to make sure that the annuity is not just suitable, but is also in your best interest.⁣⁣ ⁣⁣ In your best interest, meaning you’ve done a financial planning analysis factoring in your needs and goals.⁣⁣ ⁣⁣ Then you can determine if the annuity option is really the best option — all factors considered.⁣⁣ ⁣⁣ Food for thought.⁣⁣ ⁣⁣ ✌🏼 ⁣⁣ ⁣⁣ #annuity #income #retirementplanning #financialplanning ⁣⁣

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