by FindYourAnnuity.com18. May 2012 20:43
Annuities are investment products that have an insurance component and are backed by the financial strength of the insurance company that structures the investment. An annuity allows an investor to convert the annuity into a stream of periodic income payments either over the annuitant's lifetime or a fixed period. Many conservative investors like the idea of an annuity because they like the certainty of an income stream over their life expectancy or their beneficiary in the case of a joint annuity. Annuities offer a measure of protection against market downturns, may provide a guaranteed investment return, and grow tax-sheltered until you withdraw the money.
Never say Never
There are definitely cases where annuities are not right for certain investors. That being said, never let a financial advisor say that annuites are never the right choice and never let a financial adivsor say that annuities are always the right choice. As with any investment you must weigh the pros and cons for your unique situation. Find an annuity expert that you can trust to help you determine if annuities are right for you. A good and trust worthy annuity expert will never sell you an annuity investment that they feel is not beneficial to your financial future. If you do not know an annuity expert, Findyourannuity.com can connect you with a proven expert since we only work with seasoned annuity professionals.
Explore All Investement Options
Many investors take a multi-faceted investment approach by ensuring that they maximize the benefits of all of their retirement investements such as personal savings, IRAs, 401(k), etc... epecially if an employer matches contributions to pre-tax retirement accounts. Annuities can be just another investement tool for safe and secure retirement income. Annuities are popular in many countries around the world, and there is good reason for this.
Key Benefits of Annuities
Annuities have several key benefits that make them attractive to investors. Benefits such as:
- Tax-free transfers among annuity investment types
- Competitive interest rates compared to other investments that have similar risk
- Stock-market linked gains without the downside risk
- Unlike other tax-deferred investment accounts annuities, do not have an annual contribution limit
- Annuities can be idea for estate planning since proceeds from annuities can pass directly to your beneficiaries without the delay, expense, and publicity of probate in most states.
- Flexibility... There are several different types of annuities that can meet the unique and diverse financial goals of many investors. Many annuities have flexible withdrawal options during the disribution period.
As an investor you must determine if these benefits outweigh the risks based on your specific financial situation and investment goals.
"Are annuities a good investment for you?" Talk to an annuity expert today to find out.