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Annuities for Retirement: Is It a Good Idea?



Annuities for Retirement Is It a Good Idea 01

When it comes to annuities for retirement, there are a lot of misconceptions out there. Some people think that annuities are a bad investment, while others think they are the best thing since sliced bread. So, is an annuity a good idea for you when it comes to retirement planning? Take a closer look at what annuities are and the benefits they offer retirees.

Safe And Reliable Income

Taking out a policy like this will help you grow your wealth over the years. It’s common knowledge that annuities provided a guaranteed income for many retirees, which can be helpful in maintaining your lifestyle and financial security. This helps to ensure that you won’t outlive your savings. Keep in mind, however, that annuities are not without their drawbacks. You’ll want to be sure to understand all the features and benefits before making a decision.

What’s important to remember is that an annuity can provide a safe and reliable income during retirement. If this is something that’s important to you, then it may be worth considering. Be sure to do your research and speak with a financial advisor to get the most accurate information for your situation.

Tax-deferred Growth

Tax-deferred growth means that your money can grow without being taxed each year. This is a big benefit because it allows your money to compound faster. When you take withdrawals from a traditional IRA or 401(k), you pay taxes on the money that you withdraw. With an annuity, you don’t have to pay taxes on the growth of your investment until you start taking withdrawals.

Many people choose to wait until they retire before they start taking withdrawals from their annuities. By waiting, they can let their money grow tax-deferred for many years. This can result in a larger nest egg that will last throughout retirement.

Another benefit of tax-deferred growth is that it allows you to reinvest your earnings back into the annuity. This can help you to grow your money even faster. And, the more money you have in your annuity, the greater the tax-deferred growth will be.

You Won’t Have Withdraw Anything

This type of policy can be extremely beneficial for those who are looking to not have to worry about withdrawals in retirement. Many people choose to annuitize their assets so that they can have a guaranteed income stream for life, which can be especially helpful in retirement.  not having to make withdrawals can provide peace of mind and security in retirement.

Annuities can be a great way to secure your retirement, especially if you are worried about not having enough money to cover basic expenses. One of the main benefits of an annuity is that you will not have to withdraw anything from your account, meaning that your savings will continue to grow without being touched.

A Good Choice Of Investment Options

Thanks to an annuity, you’ll have a multitude of good investment options. These are the following:

  • Variable annuities
  • Immediate annuities
  • Equity-indexed annuities
  • Fixed annuities
  • Income annuities
  • Hybrid annuities

This allows you to have multiple streams of income, which is always a good idea. You can also use annuities as part of your retirement planning. For example, if you want to supplement your Social Security benefits, an annuity can help you do that.

Automated Portfolio Strategies

Going down this road will provide you with automated portfolio strategies that will take the guesswork out of saving for retirement. This can give you a big benefit and peace of mind, knowing that your money is being managed by experts.

When looking at annuities, make sure to ask about automated portfolio strategies. It could be the key to worry-free retirement!

An automated portfolio strategy is an investing technique that uses software to automatically allocate, rebalance and manage a portfolio according to pre-determined criteria. This type of strategy can take the emotion out of investing and help to keep investors disciplined in sticking to their investment plan.

Unlimited Contributions

You can enjoy the perk of unlimited contributions with an annuity. This means you can keep making deposits even after you’ve reached the contribution limit for other types of retirement accounts. For example, the contribution limit for 401(k)s is $18,500 in 2018. However, there’s no limit to how much you can contribute to an annuity.

This can be a great option if you have a high income or want to make late-in-life contributions to your retirement savings. Keep in mind that the money in your annuity will still be subject to taxes when you withdraw it in retirement.

An unlimited contribution feature may not be available with all types of annuities, so be sure to ask about it before signing up for one.

High Liquidity

High liquidity means that you can generally access your money when you need to. This is in contrast to other types of investments, such as real estate or even stocks, which can be much harder to sell quickly if you need the cash.

Of course, there are some exceptions. For example, annuities with high surrender charges could come to mind. But as a general rule, annuities offer more liquidity than other types of retirement investments.

This can be a big benefit if you’re retired and have unexpected expenses come up, or if you simply want to take a trip without having to worry about selling off other assets first.

Death Benefits

An annuity guarantees an income for life, but it also offers death benefits that can help provide financial security for your loved ones. If you die before the annuity pays out, your beneficiaries will receive a death benefit equal to the account value. This death benefit can help cover final expenses or any other debts you may have left behind.

For example, in the case of wrongful death, death benefits from an annuity can help provide for your family while they pursue a legal case. If you die suddenly and unexpectedly, death benefits can help ensure that your loved ones are taken care of financially.

In either case, death benefits from an annuity can offer peace of mind knowing that your loved ones will be taken care of financially if something happens to you.

Annuities are among the most useful things retirees can do for themselves as they offer a safe income stream with tax-deferred growth. You won’t have to withdraw anything unless you want to and you’ll have a wide range of investment choices along with automated portfolio strategies. You’ll have unlimited contributions and it promises high liquidity. Finally, there are also certain death benefits connected to an annuity!

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Great Resignation: How to beat Great Resignation with Employee Experience



Great Resignation: How to beat Great Resignation with Employee Experience

Great Resignation

The world was forever changed in late 2019 when the Coronavirus made its appearance. Countries shut down. Streets were empty. Companies held as best they could or were forced to close their doors. Many would believe that such an event would lead to employees wanting to hold on to their jobs. Typically, large numbers of resignations signify a good economy and abundant availability of jobs allowing people to follow passions instead of necessity.

Post-COVID employee experience is much different.

For two years, and some a bit more, people were forced to spend time alone, realigning the importance of human interaction, well-being, and happiness. This drive for more personal fulfilment, satisfaction, and growth stemmed The Great Resignation.

No longer were employees basing staying with jobs out of need or comfortability. Now they look for work-homelife balance, greater satisfaction and better employee experiences, or they will leave. So how do companies face this? How do they increase employee retention and improve employee engagement?

The secret is in employee experience.

Holistic Employee Experience

There are, of course, no quick fixes for the Great Resignation, small wins can motivate and drive longer-term goals for your organization. The Great Resignation—and COVID by extension—taught many employees that life meant so much more. That the daily grind working in offices with long commutes, stress, lack of rest or relaxation, and the hustle of strenuous work weeks while normal was not conducive to happiness and mental well-being.

But this shift can be used as a blueprint for better employee experience!

Companies who work on being human-centric in ideals, strategies, and decision-making can improve greatly their chances of stemming mass exodus. Post-covid employee experience is now the new golden standard, and it looks at taking a more comprehensive and holistic view of experiences.

How can you be more holistic and how does it help?

  1. Think beyond probationary periods – Your employees are more important than the first 30, 60, or 90 days of employment, and yet many companies stop professional development and training after these dates. Normalize career growth, evaluations, employee 360 reports, and feedback loops to keep learning and advancement in the scope of your employees. While doing this, you’re also keeping your strategies and Key Performance Indicators—KPIs—fresh as you go.
  2. Communication is key – Talk to your employees about what they need, want, desire, and what their ambitions may be. Learn your people like you want them to learn your company. With transparent and open communication, you are engaging with your employees and creating an environment of consistency, openness, and inclusion—aspects employees’ desire.
  3. Employee-centric Corporate Culture – It may seem like the best idea is to center your company culture around the company’s values, vision, and strategies, but this is only half the battle. Integrating employee experience into the fabric of company culture ensures the company is as focused on their employees’ happiness as their own. It creates a bond to grow engagement, which has an effect on employee satisfaction and experience. As these rates increase, so to can employee retention numbers and customer experiences.
  4. Life and work-balance Erasure – Should your employees have to ask for more work-life balance? No, they shouldn’t. When built directly into work environments or expectations, it becomes something standard instead of something to be sought after. Examples of this could be:
    1. Flex hours
    1. Unlimited PTO
    1. Work-from-home or hybrid offerings
    1. Expanded benefits to include mental health and free resources
    1. Altered work hour schedules

Rise of Human Experience

Human Experience is a viewpoint that blends aspects of customer experience with employee experience, important in a post-COVID world. Instead of viewing them as separate entities entirely, companies can connect metrics and measurements of both to view a more comprehensive experience. Employees are customers—or potential ones—and as such, so too can customers become employees. With this view, it refocuses employee experiences in direct answer to the needs stemming The Great Resignation.

Ways you can use CX strategies within EX:

  1. Employee Journey Mapping – Like in customer experience, companies can work on mapping journeys for positions within the company overall, building in professional development and growth from the outset. They can then alter these journeys through personalization when an employee fills that role.
  2. Monitoring metrics – connect goals, milestones, and trajectories with metric directly linked to KPIs. Think employee net promoter score (eNPS), employee experience (EX), employee satisfaction (ESAT), and employee engagement (EE), for example, as they can correlate with operational success as well as customer success with your organization.
  3. View of employees – view your employees with the importance you view your customers. You cannot survive without either, and just as you court customer loyalty for more profitable relationships, so to can employee relations boost revenue, growth, and expansion.

Remote and Hybrid Work

One of the lasting effects of COVID was the desire to work from home or have the flexibility to. According to Gallup, nearly half of full-time working Americans—45%—are still working remotely.  White collar workers have even higher percentage, coming in at 70%. After the shutdown, many leaders were surprised to find employees still wanted to work remotely. The Pandemic exposed an internal need for conducive work environments and flexibility.

The office and all it entailed wasn’t as attractive as some leadership believed.

It was agile leadership who switched to maintaining remote or hybrid options who won out against competitors. Record job openings only further highlight how living is more important, and work can no longer be focused on only paying bills. Organizations who shift better with their employees retain talent better.

Remote work is not the only fix, but it does show how views of work’s place have vastly changed.

Act on Meaningful Feedback

Closing the loop between you and your employees is more important than ever before. Simply hearing them is not enough. Active, empathetic listening pair with actions on a consistent basis is the wining combination. Employees not only want to know they are heard but that their input is valued.

Regularly checking in with your employees, and not only attaching it to their performance, creates a culture of partnership.

Ways to gain meaningful feedback to inspire data-driven action:

  1. Employee 360 Review [LN1] [SP2] – not to be confused with an employee evaluation, the 360-degree review is a way for all employees to gain feedback from peers, subordinates, and managers to assist employee self-evaluation.
  2. Pulse checks – a powerful anonymous survey tool. Pulse checks are in between annual reviews and keep the feedback coming for HR initiatives, but it can also inform business strategies that are employee-focused as well.
  3. Surveys – From satisfaction to engagement, the best thing you can do is ask your employees. Working from assumptions can lead you down costly mistakes. By asking directly you can get their true opinions—think of using anonymity to influence candid responses.

Final Thoughts

The biggest takeaway from this is: employee experiences is an important part of operational success. The evolution of its importance and what it means cannot be discounted. Doing so can led to higher employee turnover rates and you won’t retain your best talent. As employee experience continues to change, the forward-thinking companies with innovative leadership will make it to the top.

 [LN1]Would it be okay to tag our template here?

Yes, we can [SP2]

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