Suze Orman and annuities as an income in your retirement plan

 If you are those people that only listen Suze Orman for advice, it is time to figure out your retirement choices. And YES, Suze Orman agrees to have annuities if you are thinking of your retirement income.

Here what Suze Orman says about Annuities and Retirement:

"We have seen how TSAs make sense, and sometimes index annuities, but there is also one other circumstance. If your goal is to have income during retirement years, you do not want to take any risk with this money, you want to avoid paying taxes now, but you are still not currently in a high enough tax bracket to make municipal bonds make sense, and lastly feel that you will be in an even lower tax bracket when you retire, then I do have to say that a single premium deferred annuity is great."

EXAMPLE:
You deposit $25,000 into a SPDA, and over the next 15 years it pays you an average of 5% on your money. Tax deferred, your money will grow to $51,973. Now you need income. Simply start taking the interest from the $51,973. If the interest rate you are offered is 6%, there would be a total of $3118 a year on which you would owe taxes. If instead you had kept that money in a bank's certificate of deposit, and let's say you were in the 15% tax bracket, over the same 15 years, you would only have accumulated $46,675. The income on that 6% interest would only be $2800 on which you would owe taxes. If you put your money in an SPDA, and it performed as it did in our example, this would mean $318 a year difference in income to you. Remember, every penny counts, especially during your retirement years. When you take into account how much money you really did invest and the real rate of return your money earned over the long haul, the difference could be a significant amount.

Mintco Financial Team does specialize in retirement annuities, if you would like to speak to an expert, please let us know a good time and date that is most convenient to schedule a time to call you, and a good number to call. Also, which state do you reside in, as each state's products can vary.

Call us at 813-964-7100 or visit our website www.MintcoFinancial.com

Annuity Quote: http://www.mintcofinancial.com/quotes/annuity-quote/

Michael Minter is a managing partner of Mintco Financial and author of the bestseller financial book I-PLAN.