Fixed Annuities Could Be Your Ultimate Guide To Retirement

By Author: Robert Cook
Total Articles: 111
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Savings is one of the important parts of our life since it helps to make our future safe and secure. There are various schemes to support this effort.


Save for a better future

The Fixed Annuities are a type of insurance contract which the company makes the payments in fixed dollars. The payment is made to the annuitant for the term of the contract until his death. The insurance company will guarantee both the earning of the interest and the principal amount. It is one among the best, of the available financial instruments for those who are on the lookout to receive some type of fixed investment income.


If you wish to enter a contract with an insurance company, then it could be done by purchasing an immediate annuity. It will guarantee you a stream of income on a monthly or quarterly basis. Your income will be distributed will be on the basis of the contract, which you will choose. It could be on the basis of life-only, joint – life or the term certain. The insurance company will also take your age and gender and the estimate of your life expectancy. There are several ...
... types of Annuity or immediate annuity products in the market.


There are some similarities with the CD like investment products, as far as the fixed annuities are concerned. The basic difference is that the fixed annuities are the product of the insurance companies, while the CDs are the financial instruments of banks. They are available in two formats, the deferred and immediate. There are several choices of buying an immediate annuity, you can maximize the income or go for a lower payout option. The variable option of the immediate annuity offers the best choice of getting a much better return, since it linked to the market. When the market rises, its payment will also rise.


The fixed annuities mostly pay a guaranteed rate of interest. It appeals to the investor more than any other scheme, since he/she will not have to worry about the ups and downs of the stock market. The fixed annuities are somewhat a favorite because it has a low investment range from $1000 to about $ 10,000. The other thing is that the paid interest is out of the taxation, until you withdraw from the scheme. Do you Know, that you will get the required flexibility to choose your term, while investing in the immediate annuity scheme? You will be able to decide on your own term on certain specific number of years.