The annuity does a couple of things. It can provide you with enough to cover your "needs" expenses, and then you can invest the rest in lower-cost investments to complement that for your "wants." But at least you know that your basic expenses are covered. If, between pension, Social Security, and some type of guaranteed paycheck, my needs are covered, then I can sleep at night, and if I don't get to take a vacation this year because the market was down, I can live with that. If I can't pay my property tax or buy food, that's something that becomes difficult. Sometimes in pursuit of someone's wants, they sacrifice securing their needs. This is where annuities can fit in.
For somebody who has a very low withdrawal rate and can assume the risk of the market or can hedge this in some other way, [an annuity is] not necessary. If your house got destroyed and you have enough resources to rebuild it without having a big impact, maybe you don't need homeowners insurance.
So, it's something that you have to look at: What's the probability of this happening? What's the downside if it happens? And do I have options to be able to absorb that? It's like any other insurance decision.
www.MintcoFinancial.com
Tampa Florida Office: 813-964-7100
Buffalo New York Office: 716-565-1300
Independent Financial Advisors at Mintco Financial
When it comes to happiness, less is more
Simplifying your life may include many different factors. It may be de-cluttering your house or office. It may involve getting rid of some responsibilities that are causing you stress. It may require that you stop being a perfectionist. It might mean saying “no” when people ask you to do something you don’t want or need to do, or taking tasks off your to-do list.
In terms of your finances, simplification may include reducing the number of investment accounts you have and consolidating them to make managing your finances easier going forward. It may include setting up most of your bills so they can be paid online. It may also include setting up a system so you don’t have piles of mail (bills, receipts, insurance statements) that seem overwhelming.
When you simplify your life, you free up more time to do other things that you enjoy. Having more time is a valuable benefit. You may decide to devote the extra time to your family, to exercise, to downtime, to hobbies or even to explore a new career.
Another significant benefit of simplifying your life is a reduction in stress. Because we are so busy, our lives often feel out of control. Sometimes we feel like we are just working to keep “all of the balls in the air.” Simplifying our lives and a reduction in stress can improve our overall well being.
And finally, simplifying our lives can actually help bring peace of mind. De-cluttering is powerful stuff.
www.MintcoFinancial.com
Tampa Office: 813-964-7100
Do you want to feel more confident about the financial decisions you make? Would you rest easier knowing that you are doing everything you need to in order to achieve financial independence?
Do you want to have more time and freedom for the things you enjoy? You can.
Whatever your current situation, financial concerns have an impact on your life and relationships. I can help you make the financial decisions that will make the most of what you have now and help you build a more secure, enjoyable future.
www.MintcoFinancial.com
