In today’s world, financial stability is one of the biggest concerns and therefore one should always go for long term investment schemes. However, it has been found that some opt for pensions while some depend on the stock markets. So why opt these unsecured schemes and hamper your future? Go for annuities. An annuity refers to a contract drawn between the investor and an insurance company. Although there are various sorts of annuities, the best bet for retirees is none other than fixed annuities.
First, the investor provides money to the insurance company. This money starts hiking up in a tax-deferred manner. The initial investment along with any other gains is then distributed back to the applicant in various ways. Now, the manner in which the funds are usually redistributed actually refers to the concept of annuity. For fixed annuities, the borrowers are assured a guaranteed rate of return, that is, investors can easily rely on the consistent payments throughout the entire period of their fixed annuities.
Fixed annuities can be a stable way to earn after retirement. It’s undoubtedly one of the most reliable sources of income for every individual after retirement. You are assured not to come across any sort of fluctuations or complications. As far as the returns are concerned, there will neither an increase nor any decrease. Most of the fixed annuities are meant to cater to the remaining days of an individual’s life. Keep in mind, the longer you live, then, the more chances you have in fetching greater returns.
Fixed Deferred Annuity is the most reputed scheme of fixed annuity. In a fixed deferred annuity, there are no taxes owed till the distribution of funds kicks off. The distribution of funds takes place through annual withdrawals up to 10%. It can also be done through monthly payments. A fixed deferred annuity is an out-and-out savings account.
Now, there are various sorts of fixed annuities � Fixed Immediate Annuity and CD-Type Fixed Annuities.
Fixed Immediate Annuity – A fixed immediate annuity is one where the processing of annuities commences instantly. It does not follow any accumulation period. Here a lump sum payment is provided on retirement, and if you are the annuitant, you start getting monthly payments right from that period.
CD-Type Fixed Annuities are nothing but a sort of a cross between a fixed annuity and a CD. Usually, a fixed interest rate is given on a period of one to ten years. The rates range in between 3% and 10% during that era. If you wish, you can withdraw up to 10% of the funds.
Prior to opting for annuities, it’s always vital on behalf of the annuitant to check the existing annuity rate. If you not able to get the current annuity rates, contact an annuity agent via online who can help you do the same job within moments. Since annuities are related to future investments, it’s advisable to get in touch with an expert and make the deal accordingly. Instead of running to and fro, simply unlock your PC, connect to the web, contact an annuity expert and know your annuity rate.
