When Is the Right Time to Buy an Annuity

When Is the Right Time to Buy an Annuity

This educational video discusses the key factors to consider when selecting an annuity, emphasizing the importance of time horizon and personal financial objectives. The speaker explains how different time frames (5-10 years, 10+ years, or immediate needs) should influence annuity selection, and highlights the need to align solutions with specific goals like income replacement, wealth preservation, or legacy planning. The discussion also covers important triggers to consider, such as Social Security timing and potential inheritances, providing guidance on how to prioritize needs when making annuity purchasing decisions.
Video Transcript

There's a lot that goes into that. Time horizon is key. How far out before you need to transition to income? Is it five to ten years?

Is it ten years or longer? Is it immediate? You need to align your solutions with your objectives as well. Is this money that's going to replace your working year income?

Is it benchmarked to make sure that it lasts as long as you do? Is it designed to pass on? Do you not need this for income? Is it just straight accumulation and growth?

A lot goes into it. Just make sure that you prioritize your needs and your objectives. So a couple of big triggers might be if you're tapping into Social Security and when that's going to be, do you foresee an inheritance in the future that you would be able to leverage for supplementing your income?

Many things can be a factor when it comes to the right annuity and the right time to purchase one.