The advantages, the accumulation rates and interest rates all differ in various fixed annuities. So ensure that you get expert guidance before you select and sign documents for any specific product. You have a variety of annuities to choose from, but get one that suits you best.
Often people talk to their friends to find financial products. While this is a great way to learn about innovations in investment products or even find a good financial advisor, it's not the best way to find a fixed annuity. Each person has different needs and yours may not be the same as your neighbor, family member or friend. Changes also occur in the industry daily.
A person who puts in a principal during a period when the interest was sky high, may be getting a bigger sum as opposed to people who invested their money during a lower interest rate period. The companies alter the returns some times and as a result, what you get every week may change accordingly.
Fixed annuities are excellent for people seeking security irrespective of the fact whether it is to draw an instant income or permit the invested amount to accrue interest. The stable upward trend with absolutely no worry about the loss of the initial amount invested frequently attracts those who are dubious about taking any risks. Invariably such people are those who are in their pre-retirement years and have no will to fight for losses that occur due to bad investment.
Fixed annuities, similar to the banks, offer warranties supported by the government. If any company in any particular state happens to face financial trouble, they ensure that the policy holders' do not lose their assets, by selling proportionately pooled funds. So, as you can see the State Guarantee Funds carries out the same functions like the FDIC, making fixed annuity the most suited for people on the lookout for safe means of investing their money.
You may receive advice from friends regarding investing in an annuity that offers high interest rates, but before investing you must ascertain whether it suits your situation and your needs. Remember matters like emergency funds or sudden access to any other sort of money are points to be considered and dealt with before you make the investment.
Each annuity has a surrender period. The surrender period is similar to the length of time you lock your funds into a CD. If you remove the funds before the time is over, you pay a penalty. Unlike a CD, however, if you decide to continue the contract after the surrender period, you don't have the hassle of going to the bank and signing up for a new CD. If you miss the window, also unlike a CD, you don't have to wait, it's available to you anytime you choose. It never begins another surrender period.
There are a lot of people for whom the money that they invest is never made use of and for such people; the term of surrender does not create any trouble. But for people who have to use to money when a contingency arises, the penalty free sum is an important criterion. Similar is the case with persons who require sums at fixed intervals. The most important thing that you should look into is what exactly your requirements are before you put in your money. - 29969
Often people talk to their friends to find financial products. While this is a great way to learn about innovations in investment products or even find a good financial advisor, it's not the best way to find a fixed annuity. Each person has different needs and yours may not be the same as your neighbor, family member or friend. Changes also occur in the industry daily.
A person who puts in a principal during a period when the interest was sky high, may be getting a bigger sum as opposed to people who invested their money during a lower interest rate period. The companies alter the returns some times and as a result, what you get every week may change accordingly.
Fixed annuities are excellent for people seeking security irrespective of the fact whether it is to draw an instant income or permit the invested amount to accrue interest. The stable upward trend with absolutely no worry about the loss of the initial amount invested frequently attracts those who are dubious about taking any risks. Invariably such people are those who are in their pre-retirement years and have no will to fight for losses that occur due to bad investment.
Fixed annuities, similar to the banks, offer warranties supported by the government. If any company in any particular state happens to face financial trouble, they ensure that the policy holders' do not lose their assets, by selling proportionately pooled funds. So, as you can see the State Guarantee Funds carries out the same functions like the FDIC, making fixed annuity the most suited for people on the lookout for safe means of investing their money.
You may receive advice from friends regarding investing in an annuity that offers high interest rates, but before investing you must ascertain whether it suits your situation and your needs. Remember matters like emergency funds or sudden access to any other sort of money are points to be considered and dealt with before you make the investment.
Each annuity has a surrender period. The surrender period is similar to the length of time you lock your funds into a CD. If you remove the funds before the time is over, you pay a penalty. Unlike a CD, however, if you decide to continue the contract after the surrender period, you don't have the hassle of going to the bank and signing up for a new CD. If you miss the window, also unlike a CD, you don't have to wait, it's available to you anytime you choose. It never begins another surrender period.
There are a lot of people for whom the money that they invest is never made use of and for such people; the term of surrender does not create any trouble. But for people who have to use to money when a contingency arises, the penalty free sum is an important criterion. Similar is the case with persons who require sums at fixed intervals. The most important thing that you should look into is what exactly your requirements are before you put in your money. - 29969
About the Author:
John C. Ryan analyzes the merits of a fixed annuity as part of a proper retirement investment portfolio. Fixed annuities are a low risk investment, tax deferred as a way to save for retirement.
