When it comes to retirement planning, one of the decisions you’ll need to make is whether or not to buy a straight life annuity. But what are the benefits of having a straight life annuity in Minnesota, and why do you need it?
Enjoy a Steady Income Stream in Retirement
The primary benefit of having a straight life annuity in Minnesota is that it provides you with a steady income stream in retirement. This can be a significant advantage, especially if you’re worried about outliving your savings. With a straight life annuity, you’ll know exactly how much money you’ll have coming in each month, giving you a greater sense of financial security.
Don’t Worry About Losing Your Savings
Another benefit of having a straight life annuity is that you don’t have to worry about losing your savings if you live a long time. With other retirement plans, such as a 401(k) or IRA, your savings can run out if you live a long time. But with a straight life annuity, your payments will continue as long as you live, no matter how long that is.
Know Your Payments Will Continue Even if You Have Health Issues
If you have health issues later in life, you may be concerned that your retirement income will stop. However, with a straight life annuity, your payments will continue even if you have health problems. This can give you peace of mind knowing that you’ll still have an income even if your health deteriorates.
Tax-Deferred Growth
A straight life annuity may offer tax-deferred growth. This means that your money can grow without being taxed until you withdraw it. This can be a significant advantage if you want to grow your savings as much as possible.
