Annuities and Fixed Rate Annuity contracts are very popular today as a
financial services product.
There are many different types of annuities and companies that sell or
provide annuity products. Some of the better known annuities are
offered by the major life and casualty companies as a way for people to
understand what their future income will be and how much they can expect
to receive. These annuities are used in retirement planning and
Fixed rate annuities are contracts where you deliver a lump sum payment
or fixed month or annual payments for a number of years and then when
your fixed rate annuity contract date kicks in, you should start getting
a fixed rate of return for the annuity contract you purchased.
Buying a fixed rate annuity is quite easy and we always recommend that
you consult with your financial and tax experts before you look at or
buy any financial service product.
By talking to your financial planner or tax expert, they can answer the
types of questions that you have, including is a annuity right for me?
The different types of annuity products allows for a wide variety of
products and plans so it can get confusing if you do not understand this
type of lingo and the financial terms that may be discussed. You
can either look online or in your local paper for qualified and trained
and licensed financial planners if you do not know one or if you do not
have one. They will usually consult with you free the first time
and allow you to ask them questions regarding them and their products to
see if you match up with them.
Some of the more popular types of annuities include tax-deferred and
variable annuities. Some offer and include a death benefit that
will guarantee payments to your beneficiary. Annuities come in
many forms and some of the more notable companies selling and providing
annuities include, Fidelity, Mass Mutual, John Hancock, Vanguard, J.G.
Wentworth. These are just a handful of the many thousands of
companies and agents that provide annuity help and products.
Each year billions of dollars are invested into financial service
products that we call annuities. These annuities usually offer an
income stream that you cannot outlive. These products can go hand
in hand with life insurance because they pay while you are still alive
and life insurance pays when you die. Some of the variable annuity
products can invest in mutual fund investment companies as a hedge
against inflation. These annuities can also be risky because you
are at the mercy of the market going up or down. As we all know,
this last year or two have been tough on the market.
The fixed rate annuity has less risk, actually very little risk.
You are really investing in the company that is offering the fixed rate
annuity. You will want to make sure that the financial service
company or life insurance company is quite strong and is not having
financial problems. If the company that issues the fixed rate
annuity has financial problems, then you could experience an issue
with their annuity. Most of the larger financial services
companies are quite strong and their products will stand and survive the
test of time.
Another annuity product is called the index annuity. These
annuities are tied and fixed to the upside of the market. Once
again, if the market goes up, you are in the money but if the market
goes down, you can loose. We have experienced some intense
volatility in the stock market the last couple of years so everyone is
very aware that markets can go both ways. Annuities are a good
place to put your money if you do not need it to live on and want a
retirement program that will pay you money on a monthly or quarterly
basis when you get older. It is always a good idea to invest your
money during the years that you make the most for the years when you
will not be working as much and your income level drops.
Always consult with a qualified and licensed financial professional
before you spend any of your hard earned money in financial service
products including annuities. Take time to research the company
you are looking at for news, financial statements, what others say in
forums and chat rooms and any other type of information that will help
you invest your money in a safe and sound manner. Annuities can be
a wonderful investment and hedge for the future if you purchase the
right one for you.