June is National Annuity Awareness Month

June is National Annuity Awareness Month

June 8, 2022 – Lost amid all the National “Fill in the Blank” Month celebrations recognized in June (my personal favorite just might be National Accordion Awareness Month), perhaps none hits closer to the pocketbook than the one created by the National Association for Fixed Annuities (NAFA): National Annuity Awareness Month.

While all the stock market indexes continue their roller coaster ride taking your money and peace of mind along with it, you might use this month to reassess your future income plans. Annuity rates are very attractive these days.

As interest rates increase, so does the return on your money when you exchange a lump sum for a promise to receive guaranteed future income from a life insurance company.

According to one recent article, “the average payouts from an immediate annuity increased by more than 11% for men and 13% for women since the beginning of 2022.”

This is excellent news for anyone settling a personal injury claim who has the options to structure their settlement. Structured settlements provide guaranteed tax-free (physical injury) or tax-deferred (n0nphysical injury) when elected as part of a negotiated settlement for damage claims.

As people near retirement, their risk profile generally shifts to more conservative options. The well-established security annuities offer is something that should be considered at this crucial juncture.

Finn Financial Group