How to Retire? Annuity is an Important Tool.

Retiring comfortably is a goal shared by most. Annuities can provide protected lifetime income every month with growth potential. *1

Your 401(k)s and IRAs help provide income in retirement, but they can't guarantee you income for life. And with people living longer than previous generations, running out of money is a possibility.

An annuity helps you and often your spouse or family get income for as long as you need it. It can supplement other guaranteed income you might have.

Which plan does fit the new immigrants better? The first generation immigrants are distinguished by lack of time. Due to their lateness on signing up retirement plans(IRAs=Individual Retirement Accounts), they don't have too much choice between life insurance and annuity. As their average age is between 40s or 50s, annuity is preferable, no matter how hard they work to catch up with social security points, the time to hit the age of 60 is very limited. Other than that, per IRS requirement, an active individual can only contribute $6,500 per year to her/his IRA. Supposed this person is able to work for 20 years, the final account value could only be $130,000 in total (let's subtract interests earned by taxation for a simple calculation), which will not cover a basic retirement cost for twenty years, not even for ten years in US today.

To off-set this short of time and limitation on the sum allowed by IRS through traditional retirement route, opening an annuity account with no limit on how much you wish to save is an obvious advantage. The other great feature of annuity is that many insurance carriers offer products with guaranteed life time income rider allowing annuitants to receive equal amount of money until age 99, even the out of pocket money they saved runs out. *1