I’d like to welcome our guest author, Angela Brown. Angela is a contributory writer associated with few US-based financial and Wisconsin debt consolidation community and has written several articles for various financial websites. She holds her expertise in the Debt industry and has made significant contribution through her various articles.
It is very important to plan your retirement much ahead of time. If you do that you will be able to lead a stress free retired life later. Now, there are various kinds of investments and you may choose any one to have a financially secure tomorrow. Life insurance and annuities too play an important role in regards to your retirement income. If you have good income in your retirement age, you will be able to pay off your debts. If you are in Wisconsin, and if you need the help of a Wisconsin debt consolidation company to pay off your debts, you will be able to use this money to make payments to this consolidation company.
Role of life insurance in retirement income
Life insurance is can help you earn during your retirement. Life insurance is something that offers both protection and value at the same time. Insurance policies, especially cash value life insurance provides you tax-free cash flow however through a combination of the policy loans and the withdrawals. But the withdrawals and the loans will reduce the death benefit and the cash value offered by the policy.
Another advantage of life insurance policy for your retirement income is that the income that you get from your life insurance is not subject to tax penalties till you become 59 ½ years of age. Moreover, a customer can pay as much as he wants to or as less as he wants to in annual premiums. But, you will have to talk to the insurer about the minimum payments or else to low a payment can result in lapse of the policy.
Another important part about life insurance is that if the insured person dies even before saving good amount of money for retirement, the insurance acts as the income for the spouse.
Role of annuities in retirement income
Annuities too are a great way to save money and generate income for your retirement. You can buy a life annuity after getting a life insurance policy of the equal amount. When you do this, you ensure a monthly payment for your life. This is insured annuity. The advantage of such an annuity is that the older you get the lower becomes the portion of the annuity that is taxable. However, this may vary according to the states.
With the help of an annuity you are doing away with the tension of outliving your capital. The life insurance company takes away this tension. The grater the years you live, the greater will be the benefits that you may get. There are also various kinds of annuities according to your needs.
To your safe retirement,