Finding the Right Immediate Annuity For You.
If you are looking to solidify your retirement needs, look no further than the traditional annuity. Many people are unsure as to the benefits of an annuity and will typically ask, "What is an annuity?" An annuity is very simple in concept. The goal of an annuity is to give an individual guaranteed payments for life or a certain period of time. This is why fixed annuity rates and quotes - immediate annuities are so desirable for those approaching retirement, it is simply a safe alternative to the risky market, and sometimes yield more than your typical bank CD. You can always find an annuity calculator on the internet, which will help you calculate the amount of money you could expect if you were to purchase an annuity. There are many options that one can take once an annuity is annuitized. When you annuitize an annuity, you are essentially "activating" the annuity. Annuities grow tax deferred, allowing your funds to grow quickly, due to the fact that you are not paying taxes on the growth, like with some other methods of saving for retirement.
There are a few ways that you can ensure that you choose the right annuity. The first suggestion I would have is for you to find a reputable organization that is licensed by the state you reside in to obtain the correct information. Different annuities come with different benefits and drawbacks. For example, an equity indexed annuity may sound great because it is linked to an index, such as the S&P 500, however, this product will come with additional fees. Some people wish to continue to put money into an annuity, while others have a lump sum of cash, if you do have a lump sum of cash, and are looking for the safety of an insurance company to write you a check monthly or annually, you would need to double check their ratings with A.M best. A.M Best rates insurance companies by their financial strength. The last thing you would want to do is to obtain 1% more returns, with a lesser known company, due to the fact that their financials are not as strong as a company offer a 1% lower interest rate.
Furthermore, you should check with your local Better Business Bureau, to ensure the company you are about to do business with does not have a poor rating, or excessive complaints. Fantastic companies typically have little to no complaints, and if they are state licensed in addition to the favorable BBB rating, this is likely a company that you would want to do business with. Annuities can be a little confusing to most people, so take the time to do your research and find a firm that primarily deals with annuities, or a company that will refer you to an agent in your area. Understanding an annuity over the phone can be a daunting challenge, and many people prefer to find a local annuity agent to help answer any and all questions or concerns.
There are a few ways that you can ensure that you choose the right annuity. The first suggestion I would have is for you to find a reputable organization that is licensed by the state you reside in to obtain the correct information. Different annuities come with different benefits and drawbacks. For example, an equity indexed annuity may sound great because it is linked to an index, such as the S&P 500, however, this product will come with additional fees. Some people wish to continue to put money into an annuity, while others have a lump sum of cash, if you do have a lump sum of cash, and are looking for the safety of an insurance company to write you a check monthly or annually, you would need to double check their ratings with A.M best. A.M Best rates insurance companies by their financial strength. The last thing you would want to do is to obtain 1% more returns, with a lesser known company, due to the fact that their financials are not as strong as a company offer a 1% lower interest rate.
Furthermore, you should check with your local Better Business Bureau, to ensure the company you are about to do business with does not have a poor rating, or excessive complaints. Fantastic companies typically have little to no complaints, and if they are state licensed in addition to the favorable BBB rating, this is likely a company that you would want to do business with. Annuities can be a little confusing to most people, so take the time to do your research and find a firm that primarily deals with annuities, or a company that will refer you to an agent in your area. Understanding an annuity over the phone can be a daunting challenge, and many people prefer to find a local annuity agent to help answer any and all questions or concerns.