Fixed Annuities: The Key to a Carefree Retirement Life

May 18, 2012   ·   0 Comments

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Financial stability is something that we all crave for. As long as we have a job, we are secure. But, what about the retirement years? All we have then is what we save while we work. It is best to start early than repent later. During our retirement years, we do not have any regular source of income but our expenses remain the same or rather increase. Many of us who have been earning and managing their own expenses all our lives find it very hard to ask for financial assistance even from our near and dear ones. So it is best to consider the option of annuities. There are different kinds of annuities and if you are planning for your after-retirement life, then are your best option.

http://stockssavvy.comWhat are fixed-annuities?
An annuity refers to a contract drawn between the investor, which is you, and an insurance company. In case of a fixed annuity, you have to pay a certain amount of money to the insurance company. It will be later returned to you in the form of installments.

How does it Work?

The money that you pay goes on accumulating but no tax is levied on it. This amount of money and the interest or any other gain that the insurance company provides is then distributed over a certain period of time. So, once you retire a regular income will be guaranteed by the insurance company. These are a secure source of income and it is your money that you are getting back. So, in a way you are supporting yourself even after you retire.

Among all the , Fixed Deferred Annuity is the most reputed. You do not owe any taxes until the distributions begin. Distributions are usually annual at the rate of up to 10%. You can also choose the monthly payments option. It is basically a savings account.

Jonathan

Author's bio- The author, Jonathan james has a keen erudition on finance and he writes various articles that are related to finance. Financial topics are something which you can't do away with, and he does an extensive research on this subject matter.

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