Like any other important decision in your life taking up a fixed annuity is a very important decision that will not only affect your net income but also your lifestyle as well. As the world becomes more aggressive with regard economic wealth one should be prepared currently and even more for the time when one is not in the same physical and mental state to cater for their daily necessities. In order to try and safeguard their future a lot of people will take on investment decisions that in their view just do this. Of course, some pay off and one gets an excellent retirement package while other investments leave their owners open mouthed, shocked and unsure of what to do with their lives. To avoid such nasty surprises some research would be helpful even when taking up a fixed annuity. There are some factors to be considered while evaluating whether to take up a certain annuity.
The most important factor would be to check whether the interested offered is guaranteed as purported. Check the factors that would reduce this rate with each insurance company; some offer very good rates say, 8% return but their charges total up to 4% thus remaining you with only 4% to enjoy while you could have taken one that offered 6% return but their charges total up to 1.5%, this will leave you with 4.5% to enjoy. In annuity circles, 0.5% is quite a substantial difference because this runs for at least 10 years. We can summarize this by saying that you need to compare not only the fixed annuities but also the different other investment opportunities around you.
Ensure that that the payout is right for you. In view, that this is a long time commitment, you need to plan ahead and know that this is money that should not be touched for the required goal to be achieved. The time before you receive the payout is important because you don’t want to plan for the next 3 years whereas the plan is for 15 years.
While considering the best investment decision to make risk is a major factor that comes fore. Unlike other annuities or investments, a fixed annuity plan will always give secure reliable returns. Its premiums are invested in government bond or the very good performing company bonds that have a reliable return and are guaranteed. This assures one that their savings will never lose value because some stock bought by your insurance company lost ground at the stock exchange.
Moreover, it is always good to check out the company’s history, the insurance agent should be in a position to provide you with these details. Take note though that in business as well as life in general the future is not necessarily an image of the past though the past helps us making wiser decisions. While you are still at checking the company’s history don’t forget to check whether the insurance company you are eyeing for licensed fixed annuity.