Thursday, January 17, 2008

A Investment made for the rich but affordable to the poor!

Like Retirement is one of the most important times you need money in. Since you are enable to work because usually of physical and mental attributes. So at the moment you might have maxed out your 401lk and Ira every year ,but living your lavish lifestyle that wont be enough for you to retire with. So what are options ,you have none so I am going to give you one. An annuity is an great investment to fill that void since you have no other choices. You are probably like why should I get an annuity? For one thing it is tax deffered similar to your 401k or Ira. Meaning whatever you earn from the annuity's principle is tax free until you take it out.

Not only annuties ar tax deffered, annuities also offer you a form of leverage. Meaning you can buy an certain amount annuity for incremental payments. Example of this is you purchased a 20k annuity but you pay 1k a month . Also that 20k is growing at a nominal rate before all the 20k is collected. The nominal rate is matter of the type of annuity you get , which are fixed, variable, or equity index annuity.Each one of these annuities have a different percent of how much interest you can get returned on your annual investment.And I failed to mention all annuities are funds operated insurance companies.

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First you have the an fixed annuity which is the safe investor's dream.Remeber one thing all annuities given by insurance company is invested in some form of assest group or fund. So the fixed annuity is basically a contracted interest rate the insurance company has to pay the investor no matter how much the company lose or gain on their investment. So if you like investing in bonds this is the way to go since you have no way of loosing money. The only clause I think is in a fixed annuity is interest rate temporarily and the insurance company could go bankrupt( but hey that is a risk with all investments)

Next up is the equity index annuity which means it is an stock market indicator. It cosines with index equities such as S&p 500 or Russel 5000. Which means if a segment or group of stocks are doing well,you are going to receive a good amount of interest back on your investment and when they are doing bad your interest deflates.

Variable Annuity is the savvy investors toy since with the variable annuity you have almost complete control of your investment.You can put whatever mutual fund or asset fund you want to put in your investment. The downside to this is if you don't know what you are doing you will lose big.

Other important benefits you can get from annuities are the following; It can be given to some one else such as spouse or child upon death,annuities sometimes payout as much as 10% of principle annually after it reaches a certain maturity level, and these investments can be transferred to other annuity based funs tax free.One thing you still have to watch out for is how much you are being charged by the insurance company.Also if you are interested in selling your annuity settlement quotes can help you out .Settlement Quotes is company that help you sell when your are ready.And Trust me Settlement Quotes could get you a lot back for your annuity.And I believe Settlement Quotes is the only company I am aware of that does this.So if you want a great new way to invest that also pays you passively and with a lot options you have too invest in a annutiy

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Beryl S. said...

Speaking from experience, I have to agree that annuities are a godsend whether you choose to keep or sell them.

When my husband and I decided to retire and move closer to his sisters, we had trouble selling our house in Ohio. By purchasing part of one of my husband’s annuities, we were able to secure a down payment for our retirement home while still letting us wait for the right offer on our old home. And we still have enough income to live comfortably.

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