Annuity for retirement is an important vehicle in building your nest in the future. Imagine as a regular worker, you are used in receiving a money income, which you can use to correspond to your needs but when you retire, how will you respond to your financial needs? When you are younger, you have pressing needs like education, providing for the family and other obligations but when you get older, more pressing matters like health concerns, mortgage and financial woes are added.
As a retiree, there are so many things that you may not be ready such as stoppage of your daily routine and source of income, to help you manage these things, hence it is important that you equipped yourself as early as now to help you cope with life different changes.
Part of planning your retirement is to have an investment now while you are still young and you are then able to enjoy the money when you retire. Invest your money right now by availing retirement annuities.
Retirement annuities are an investment product of insurance companies but what makes this difference is that this involves bonds and securities. There are different kinds of annuities. The variable annuity and fixed annuity, both annuities almost work the same, the only difference is how the money is invested. The variable annuity will allow the annuitant to choose where he or she wants the money to be reinvested. The annuitant may chose whether to put it in one investment or diversified investments like securities and bonds but with fixed annuity, the money is reinvested by the insurance company in one investment instrument.
Retirement annuities are considered a good income vehicle when you retire because of its several benefits that can be tailor made for your demands.
First, as an income vehicle, you can choose whether you want to receive a lump sum of large amount when you reach your retirement age. The huge amount may help you buy retirement property where you can resettle after retiring.
Second, if you do not want to receive lump sum, you may choose to receive money in monthly or quarterly basis. This is often what most retirees prefer since receiving money each month can make them feel that they had not retired at all.
Third, unlike other investment instruments in the market that offers low-interest rates, annuities may offer high interest and guarantee higher yield for annuitants.
Fourth, annuities are tax-deferred investment. All investments in the market like mutual funds and bonds are taxed immediately. Sometimes, you may not see the returns because of the taxes that are charged up front but with annuities, you may deposit many times without being taxed.
No payments during the accumulation period are taxed and you will only be charge when you withdraw come you are retiring age. That means you can get the real value of your hard-earned money.
If you would like to have a more fulfilling retiring experience for you and your family, find out more about annuities now!
If you want to find the rightkind of annuity for you, enter your ZIP and answer basic questions today to get a free annuity quote. The free quote will help you choose which offers the most interesting rate for your future plans and needs.