YOUR MONEY Financing Your Future Made Simpler (NAPSA)—Theaveragelife span in America keeps on increasing. In fact, most 65-year-olds today have more than 20 years ahead of them. How can you make sure you won't outlive your money? Experts in finance point to the annuity. An annuity provides payments— either fixed or variable—on an investment for a lifetime or for a certain amount of time. Annuitizing your savings, or a portion of them, means your assets can last as long as you do. Annuities are written by life insurance companies and available from insurers, banks and bro- kerage firms. Annuities have certain benefits other retirement planning tools may not, including: e Relief from current taxes. Taxes on annuity earnings are deferred until payout. Protection for your family. Variable annuities—where your assets typically are invested in stock or bond funds—generally have an insurance feature. This feature guarantees that if you die before your payouts begin, your heirs may receive, for example, the greater of the amount you con- tributed plus the interest or the market value of the funds in your account. With fixed annuities, which guarantee specific returns, your death benefit is generally equal to your premium payments, plus interest. e Response to market changes. You can moveassets in a variable annuity from one fund to another without incurring any current taxes. With fixed annuities, life For assets that last as long as you live, experts advise annuitizing part of your savings. insurance companies update guaranteed rates of return that vary with market changes. e Ability to save as much as you can. Unlike IRAs and 401(k)s, no tax code restrictions limit the amount of money you can put into an annuity. e Timing flexibility. Annuities are more flexible than other retirement savings products. Unlike IRAs and 401(k)s, you do not have to begin receiving pay- outs at age 704. e Withdrawal flexibility. You choose how you receive payouts from your annuity. But it is impor- tant to note that the annuity is the only financial product that guarantees lifetime income. You can learn more about annuities and how one can help you from a life insurance agent, a life insurance company, or online at www.acli.com.
