Consider annuities with an income guarantee to provide steady retirement income.

vacation_965867One of the biggest concerns to investor is making sure their portfolio will provide them with the retirement income they’ll need in those Golden Years.

Annuities bring ‘certainty’ to income streams. 

With today’s uncertain economic times annuities with minimum, income guarantees are getting a closer look by baby boomers, and retirees, to provide that all-important anchor to their portfolios.

What’s more, annuities are even becoming a popular option within the 401(k), according to “Annuities on the rise in 401k plans,” an article on the Kiplinger website.

Income…even if the market fails.

“Fear of a market downturn right before retirement is leading to record sales of annuities with income guarantees…you invest in mutual funds but are promised a minimum income stream every year in retirement for life, even if the market fails,” notes the article’s author, Kimberly Lankford.

Before 401(k)’s became portable, employees had no way of taking an annuity with them to their new place of employment; today, the guaranteed income from an annuity can ‘follow’ workers throughout their working career.

“…employers (are) more will to offer these products. Insurers…now also offer rollover IRAs specifically for the guarantees,” says Lankford.

Puchase with taxable income, or in a rollover IRA.

If an employer offers limited choices of an annuity in their 401(k) program, the investor can still use a portion of any rollover money from the account to buy an annuity product with a better guarantee in the rollover IRA, Lankford noted.

Of course, annuities can be purchased outside an employer’s 401(k) using an investor’s taxable funds, or through an IRA (Individual Retirement Account.)