AARP Insurance

AARP Insurance Annuity plans are in the news at the moment as people take try to make sense of the stock market and how they will be affected the question is Are annuities for you?

I think this is a good time for people who own an annuity - or are considering buying one - to ask themselves whether they really ought to be in an annuity at all. some people recommend a particular type of annuity - an immediate annuity - as a way to convert a portion of your savings to a lifetime income once you've retired.

But immediate annuities represent a very small portion of annuity sales. Most of the annuities that are sold fall into two categories: fixed deferred annuities, which are sold to older investors such as AARP insurance members , most of whom I think would likely be better off in bank CDs and bonds; and variable annuities, which are touted as mutual funds that can shelter their gains from taxes and often sold (usually inappropriately in my opinion) as investments for IRAs and 401(k) rollover money to people who are still years away from retirement.

If nothing else, I hope the attention that insurers and annuities are getting will lead AARP Insurance members to re-assess (ideally with the help of a financial adviser who doesn't depend primarily on annuity sales for his or her livelihood) whether they really belong in annuities.

David Ogden -Tomorrows Home Business
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AARP Question

Here is a typical AARP members question "I retired five years ago, but with the economy and inflation as they are, I need to go back to work. Where do I start?"

You need to think about what you want to do and to be honest restarting a conventional job is not for everyone, after five years your attitude to work will have changed and you will find it hard to come out of retirement mode.

Yes AARP can help you find employment via their site and its partly why AARP was set up. How Long and how much work do you want to do. Some people decide they would like to work from home which saves the cost of travel etc which can eat into your earnings.

As an AARP member you might be interested in starting your own business, but as you say funds are short. If you can afford to put up say $1,000 it is possible to create an reasonable income from it in about 10 years. This will not provide immediate help but is much better that the get rich quick scams that AARP member unwittingly fall for.

As a retired person myself, I actually enjoy watching my money grow month on month especially during these difficult times, I work from home at hours that suit me.

David Ogden -Tomorrows Home Business
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