Tips For Finding The Best Annuity Rates
If you are looking for the best annuity rates, it will be important to decide whether the annuity is going to be part of your long-term retirement plan or will be a shorter-term investment.
The interest that you get, as well as other benefits of the plan will be one of the major factors in finding the contract for you.
There are some tips that will help you to find the interest that fit your needs more easily.
1 - Doing some research on annuities and how they work will be very helpful.
Most people who think about an annuity, look for the highest rates and do not consider the other factors that can make the high rate a costly investment.
When you are not planning on leaving your money in place over the term of the contract, you will save money by getting a shorter term contract.
2 - Make sure that you do a background check on the provider you are considering.
A reputable provider will have a history in the industry and with their clients for dependability and reliability.
Interview providers prior to making any decision on the provider you select.
Rates can be negotiated depending on the term of your contract.
Finding a better rate for your contract will require that you talk to providers before making a decision.
3 - Find out what the withdrawal charge is for the contract and when the charge will phase out.
Most providers charge 2% to 8% for withdrawals made within the first year.
The charge is reduced and phrased out by the 3rd to 6th year.
Knowing what the charge is before you commit can save you money if you have an emergency and need to withdraw money early.
4 - Most providers allow a free withdrawal, up to 10% per year without an early withdrawal penalty being charged.
This will be very helpful if you are in a long-term contract and want to withdraw money for a special project or travel.
5 - Most fixed-rate annuities only guarantee the rate for part of the term, therefore, it is important to get the details about when the rate will change and how much it will change.
Most providers calculate their rating structure on a percentage of the rate when the change takes affect, therefore, if there is a significant drop in interest when it is time for your review, you may not get the return you want in the future.
6 - Contracts that will pay the highest premium will normally have the least amount of flexibility.
Make sure that you know what the requirements for the contract are and determine if there are charges should an unexpected event occur that requires you to retrieve your money.
The interest that you get, as well as other benefits of the plan will be one of the major factors in finding the contract for you.
There are some tips that will help you to find the interest that fit your needs more easily.
1 - Doing some research on annuities and how they work will be very helpful.
Most people who think about an annuity, look for the highest rates and do not consider the other factors that can make the high rate a costly investment.
When you are not planning on leaving your money in place over the term of the contract, you will save money by getting a shorter term contract.
2 - Make sure that you do a background check on the provider you are considering.
A reputable provider will have a history in the industry and with their clients for dependability and reliability.
Interview providers prior to making any decision on the provider you select.
Rates can be negotiated depending on the term of your contract.
Finding a better rate for your contract will require that you talk to providers before making a decision.
3 - Find out what the withdrawal charge is for the contract and when the charge will phase out.
Most providers charge 2% to 8% for withdrawals made within the first year.
The charge is reduced and phrased out by the 3rd to 6th year.
Knowing what the charge is before you commit can save you money if you have an emergency and need to withdraw money early.
4 - Most providers allow a free withdrawal, up to 10% per year without an early withdrawal penalty being charged.
This will be very helpful if you are in a long-term contract and want to withdraw money for a special project or travel.
5 - Most fixed-rate annuities only guarantee the rate for part of the term, therefore, it is important to get the details about when the rate will change and how much it will change.
Most providers calculate their rating structure on a percentage of the rate when the change takes affect, therefore, if there is a significant drop in interest when it is time for your review, you may not get the return you want in the future.
6 - Contracts that will pay the highest premium will normally have the least amount of flexibility.
Make sure that you know what the requirements for the contract are and determine if there are charges should an unexpected event occur that requires you to retrieve your money.
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