Should You Invest in Annuities?
by:
D.J Raymond
Perhaps you have heard the phrase, more month left at the end of the money.It means simply you have more expenses than you have money to pay them at the end of the month. Now apply that same thought to your retirement years. You may have a goal to retire at 59 years old. Assuming you are reasonably healthy, you might live to be 75. However, what if your retirement income runs out before the end of your life?
Unfortunately, this is a real issue retires or soon to be retirees face each day. This reason alone forces many people to work longer than they has planned and what should be your glory years turn out to be working overtime. Is there a solution?
The simple solution would be to retire with enough money so it would not be a concern. With todays economy and the constant threat of inflation, how do you know when enough is enough? Consider immediate annuities to protect your assets and provide a steady income for your retirement years.
What is an Immediate Annuity?
The basic definition is a contract between you and an insurance company that guarantees a rate of return for your investment. You pay a one-time premium and receive payouts based on a pre-determined interest rate and your own life expectancy. Essentially the larger your payment the larger your monthly income. You cannot outlive the benefits of your payout and your payout is guaranteed.
How to Buy an Immediate Annuity?
The most obvious factor for most people is obtaining the highest interest rate available, but there are other important factors to consider. Other tax deferred for example variable annuities are backed by stock market investments. Conversely fixed annuities are issued by and secured by the insurance company where the purchase is made. The priority in you selection should be the credit worthiness of the company itself. Researching the various insurance companies and their credit ratings can help you make a wise selection when shopping for an immediate annuity.
Is an Annuity Right For You?
Ultimately, financial decisions should be made by the individuals investing money. There are a number of retirement instruments to choose from. Certainly there are more than enough agents promoting retirement products. Fixed annuities provide security and stability in a time when the economy is uncertain at best. Research annuities and you will be able to make an informed decision based on your own evaluations. Investing in annuities just might work for you
Investing for retirement offers many options. Todays economy makes the decisions very difficult. If you are looking for stability and guaranteed income, consider immediate annuities. Security and stability make fixed annuities a wise choice
About the Author:
DJ Raymond is an accomplished developer and author. To learn more about
Best Annuity Rates visit
Investing In Annuities for more articles and information.
No. of Times this article has been viewed :
697
Date Published :
Mar 19 2009
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