Your IRA income can be greatly enhanced with the use of an annuity bonus. When used right it can be a major increase to your IRA income but when used wrong it can do more harm than good. A good place to start is a thorough understanding of how to make an annuity bonus work for you.
An annuity bonus is basically an incentive from the insurance company to attract your business to a certain company. Originally they were promoted as help in recovering losses and surrender charges but since most annuities do not allow a straight lump sum withdrawal of the money this idea is not really true. You could say it was true and it is kind of but it is a little bit of a stretch. The annuity bonus is really meant to increase your retirement income in the future.
Example Case Study Let's work with an easy small number to give a good example. If you invested$100,000 into a bonus annuity to create IRA income and you got a bonus of 15% you would then have $115,000. The amazing thing is that you now have $115,000 earning money for you. If you were invested in a CD then you just got 3-5 years of earnings in one move, amazing!
While the bonus is great for future retirement income you must understand that usually this isn't cash that is available right now for use. You usually have to wait 5-10 years depending on the size of your bonus. It sounds like a long time but it's not considering how long you have probably had your CD to begin with and if you have jumbo CD you were very likely not planning on ever spending the money anyway. Now, hurry up and wait!
Your bonus annuity will earn plenty of IRA income over the next ten years for use as needed but remember we are talking about the bonus part of the bonus annuity. Where the extra money comes in is to enhance your IRA income in the future as it has been growing along with your annuity value for quite some time when you start using it. Add that value into your regular annuity value and you get an amazing boost to your IRA income so the answer is yes! A bonus annuity can help with your retirement income.
It is a little like starting a separate $15,000 investment and letting it grow for 10-15 years until you need it! In good interest rate or market environment it could double the value or maybe even more! And that is just extra money! A little thank you from the insurance company just or doing business with them!
Alright, maybe it isn't a thank you as every investment has downsides but we are only talking about the bonus part of your bonus annuity. Enjoy the free money!
Bonus annuities that are used for IRA income are a complicated investment idea. Be sure to seek competent advice from your annuity professional before making any changes to your investments. And remember there is never a bad time to make more money!
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