Annuities Can Help You Plan for Both Retirement and Your Estate

Many American employers offer defined contribution plans, such as a 401(k). Although this investment tool can be a great asset in an individual’s retirement and estate planning, it shouldn’t be the only one.

Specifically, although participants may know the amount of their monthly 401(k) plan contributions, many may not have an estimate of their financial needs in retirement. Others may hold misconceptions about their 401(k) plan, perhaps incorrectly assuming that their monthly financial resources in retirement will approximate the amount of their current monthly 401(k) contributions.

Unfortunately, one recent study found that over half of American households would not be able to maintain their current standard of living after reaching the retirement age of 65, based on their current planning. Annuities can round out an individual’s retirement planning by providing a defined monthly payment for a specified period of time. That arrangement is also immune from the volatility of the market.

As a small law firm that has helped many clients prepare for their retirement needs and plan for the disposition of their estate, we are familiar with a broad range of legal and financial instruments. In fact, annuities can be a way to plan for both, since an annuity often asks an individual to estimate his or her life expectancy when selecting the period of time over which annuity payments will be made.

Our estate planning law firm prides itself on customer service, providing advice that is appropriate to the unique circumstances of each client. From immigrant families in the New York metro area to wills and trusts for the LGBT community, we have the resources to help you plan for the future.

Source: Senior Living Executive, “Fear of Death Just Might be a Key Piece to the ‘Annuity Puzzle’,” May 2016