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Annuities
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Types of Annuities
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The Different Phases of an
Annuity
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Fees, Expenses and Bonuses
to Watch For
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Sub Accounts
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1035 Exchanges
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Types of
Annuities
- Fixed Annuities
are for long-term investors, looking for secure and definite cash flow
streams. The annuity holder pays either a lump sum (single premium), or
regular payments (multiple deposits), to an insurance company, in return
for a guaranteed dollar amount, to be paid in the future for a specified
period of time (or one’s remaining lifetime). The interest rate received
is a fixed rate, and accumulates tax free until paid. Interest rates
offered are usually higher than CD and short-term money market rates, and
are normally closer to long-term bond rates.
- Variable Annuities
are for the more adventurous long-term investors, looking to participate
in the financial markets to increase their payouts. Their returns are tied
directly to predetermined benchmarks, such as market rates, indexes, or
funds. Future payments may be fixed or variable. Usually, these policies
have a minimum guaranteed payment, to migrate the downside risk. The key
is that the returns will fluctuate.
- Immediate Income
Annuities are for those
investors needing payments to commence within a year of paying the
premiums. Immediate annuities are ideal for retirement income, divorce
settlements, and settling personal injury or wrongful death lawsuits.
Review the
following topics for more information on annuities:
Introduction
Different Phases of an Annuity
Fees, Expenses and Bonuses
Sub Accounts
1035 Exchanges
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