Retirement Annuities: You've Got Options!

A Retirement Annuity can take the stress and worrying out of retirement...it gives

you a regular income and can be a strong part of your retirement strategy. Basically, you make an investment by purchasing a retirement annuity which then guarantees payments to you over a period of time or series of dates, it's up to you. A retirement annuity is also flexible: you can decide on how much you want, and how often you want it.

There are quite a few types of retirement annuities, each with different features; one type is a Fixed annuity, where you can get a guaranteed rate or return, which is great for people who are uncomfortable investing in today's volatile market without guarantees. Another type is the Variable Annuity which allows money to be invested in "separate accounts", and is also tax-deferred which allows your investment to grow much faster.

A Deferred Annuity would suit you if you're not ready to retire just yet. With a Deferred Annuity, you deposit money to the annuity account where it accumulates with interest; this is referred to as the Savings Phase. Once you retire you move to the Income Phase, and you begin to receive money on a regular basis.

An Immediate Annuity is ideal for those that are about to, or have just retired. After you make an initial payment, you immediately begin to receive money at regular intervals, hence the name.

The advantage with a retirement annuity is that you don't need to make a monthly, or even an annual contribution. Retirement Annuities are tax-deferred, this means your money grows faster giving you more for your retirement. When the time comes for you to cash out, you can choose how much each payment is going to be, and how often you want it: weekly, monthly quarterly, it's up to you. And the best part to a retirement annuity is that: no matter how much you deposit, the annuity can guarantee you an income for the rest of your life.

by: Carina Smith

POST COMMENT

Cayman Islands Holidays - Shore Diving Grand Cayman Play Golf during Your Holiday in Dorset Budgeting For Halloween Popular Attractions for Families Holidaying in Dorset Autumn Brings Unwanted Visitors Green Pest Control To The Rescue It's Never Too Early To Start Planning A Christmas Party Visiting The American Museum Of Natural History Planning A Day In Washington Dc Visiting The African American Civil War Memorial Museum Various Special Visa Like Usa Esta And Australian Eta The American E2 Visa and LLC Registration The Real Newport Beach Can I Make A Living From Nlp In London?