Why Timing is Everything When Buying an Annuity
October 11, 2023 | Kari Mellone
An annuity can be a great way to build wealth and prepare for financial success in the future. One of the most important factors when it comes to purchasing an annuity is timing. Timing will influence how much you invest, how much you will gain and the significance your annuity will make on your financial objectives.
Let’s look at what will be impacted with the timing of your annuity purchase:
Interest Rate: The foremost factor to consider that will play a role when buying an annuity is the interest rate. Timing is everything here because you want to obtain your annuity when interest rates are up resulting in a higher return on your investment.
On the other hand, if you delay purchasing an annuity in anticipation of rising rates, it could potentially subject you to increased interest rate risk when acquiring fixed annuities. Balancing timing and risk management is essential to make informed decisions for your financial security.
Market Conditions: If you purchase a variable annuity, then economic conditions will impact annuity returns. The right timing can help you avoid buying during a market downturn.
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Retirement Goals: It is important to consider your retirement goals and timeline carefully when choosing an annuity and other investment options. You want to ensure the timing of your purchase and returns appropriately align with your financial needs.
Personal Circumstances: Your personal financial situation, overall well-being, and retirement timeline will influence the ideal time for obtaining an annuity and your payout selection.
Mistakes To Avoid When Buying An Annuity
These are a few factors to consider when gauging the right time to buy an annuity. When purchasing an annuity, timing substantially impacts the outcomes of your financial strategy. By analyzing ever-changing interest rates, market conditions, and individual objectives, you can obtain an annuity at a time that maximizes its benefits for a more secure and prosperous future. Informed decisions based on thoughtful evaluation and optimal timing can pave the way toward achieving your long-term financial goals.
If you have questions about selecting the right annuity for your individual needs, Twin City Underwriters can help. Contact us today to find out more about your options.
At Twin City Underwriters, we know that individualized attention to a client’s personal situation and needs are especially important, which is why we take the time to understand you and your financial goals. Contact us to schedule an appointment with one of our experienced insurance agents.
Are you ready to have a meaningful discussion about your financial needs? Call or email TCU today to set up a free, no-obligation appointment with one of our dedicated agents.
Call Twin City Underwriters to learn more: 651-488-0172 or 800-507-6778.
