Annuities are a Great Way to Safeguard Your Money
by admin on 16/08/09 at 6:56 am
Are you retired, and trying to figure out how you will augment your income? If you are an investor looking for a simple way to maximize your money with a minimum of risk, you should learn about annuities. These plans offer a variety of benefits, and many retirees find that the benefits that they get from an annuity far outweigh the risks. Read a little further to learn more about variable annuities, and decide whether they are right for you.
Variable annuities have garnered a bit of a dubious reputation, but it’s not entirely warranted. Simply put, an annuity is a contract between an investor and a life insurance company, saying that you will give them a certain amount of money from which they will pay you each month, for a predetermined amount of time. If well thought out, annuities can provide a lifelong source of income- and that money can be passed on to an heir or used to pay any final expenses. Annuities provide peace of mind- they allow people to take care of their families even after they’re gone.
Perhaps the biggest advantage to a variable annuity is its tax-deferred status. If you have an annuity, you will enjoy the profits, and you won’t have to pay taxes until your monthly check is sent. That allows you to grow your investment- and you can take advantage of a strong market if you choose to do so. You can’t do that with a fixed rate annuity- which provides you with a set profit each year. Annuities are a way to earn a guaranteed profit without the risk of losing your investment.
