Annuities for The Rainy Days
What is an annuity? Many people especially the young, do not really take much heed about an annuity plan until when they are well into due retirement. If you don't already know, it is a series of guaranteed payment at fixed intervals and for fixed period of time or for the entire lifetime of an individual.
Many people do not see the importance of a guaranteed income until it is much too late. No matter how well the economy is or how well the investment market is doing, your savings can only deplete rather than grow unless you invest. However, looking at what to invest in can be a daunting task and risky even with the most professional advice.
Annuities can be good way to guarantee that you do not outlive your savings and still have the guaranteed income for any rainy days such as unemployment, emergency needs or even for retirement. An annuity plan is an agreement under which you invest your money in return for a steady stream of income for a specific period of time. With annuities, your income will be indexed to keep up with the current economic situation.
As you learn what is an annuity and begin your process to start on your guaranteed income, it is sometimes frustrating to find many others who still misunderstood this investment option. Instead of being a value-added protection for them, they ended up using it in the wrong way. Presently, there are several ways to invest in annuities and each of them works differently.
A fixed annuity is the most common type. It is convenient to calculate the exact payment for your investment. You invest an exact amount of money for a specific period of time before you are allowed to withdraw them.
A deferred annuity which allows you to accumulate your investment returns over time to grow and save. It also allows for a lump sum payment rather than an interval of payments. This option is usually offered to those over 60 years of age.
An immediate annuity works for those who have a sudden windfall and needs a responsible way to manage their money. It offers some great benefits such as security in future income and high returns with a tax deferred growth factor. It is the easiest option for a stable lifetime income.
A variable annuity is one option that provides freedom to the investor. Although this type of annuity does not offer security in comparison to the other annuities, you do get high benefits and returns for your risk.
An index annuity is slated between the fixed and variable types. Returns are higher than the fixed but it does carry a higher risk in your investments.
If you want a steady flow of guaranteed income without the headaches of risk and worries to take care of you and your family during any rainy days or even way past into your retirement, there is always one option from any of the above annuities that will fit your needs. It's always advisable to compare rates online or seek out a competent annuity specialist to help you before you sign up.
Many people do not see the importance of a guaranteed income until it is much too late. No matter how well the economy is or how well the investment market is doing, your savings can only deplete rather than grow unless you invest. However, looking at what to invest in can be a daunting task and risky even with the most professional advice.
Annuities can be good way to guarantee that you do not outlive your savings and still have the guaranteed income for any rainy days such as unemployment, emergency needs or even for retirement. An annuity plan is an agreement under which you invest your money in return for a steady stream of income for a specific period of time. With annuities, your income will be indexed to keep up with the current economic situation.
As you learn what is an annuity and begin your process to start on your guaranteed income, it is sometimes frustrating to find many others who still misunderstood this investment option. Instead of being a value-added protection for them, they ended up using it in the wrong way. Presently, there are several ways to invest in annuities and each of them works differently.
A fixed annuity is the most common type. It is convenient to calculate the exact payment for your investment. You invest an exact amount of money for a specific period of time before you are allowed to withdraw them.
A deferred annuity which allows you to accumulate your investment returns over time to grow and save. It also allows for a lump sum payment rather than an interval of payments. This option is usually offered to those over 60 years of age.
An immediate annuity works for those who have a sudden windfall and needs a responsible way to manage their money. It offers some great benefits such as security in future income and high returns with a tax deferred growth factor. It is the easiest option for a stable lifetime income.
A variable annuity is one option that provides freedom to the investor. Although this type of annuity does not offer security in comparison to the other annuities, you do get high benefits and returns for your risk.
An index annuity is slated between the fixed and variable types. Returns are higher than the fixed but it does carry a higher risk in your investments.
If you want a steady flow of guaranteed income without the headaches of risk and worries to take care of you and your family during any rainy days or even way past into your retirement, there is always one option from any of the above annuities that will fit your needs. It's always advisable to compare rates online or seek out a competent annuity specialist to help you before you sign up.
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