Any retiree will attest to this fact: there is actually no room for making an error when it comes to making investment plans. Remember that this is a class of people who no longer have a regular source of income and whatever amount of money with them is rather limited. Never can such individuals gamble with their cash and take risks in the volatile stock market. Given such scenarios, .a lot can be achieved should the available cash be invested soundly. Research indicates that investors dip into their savings and take out 5 percent or less yearly so that the amount remaining at their disposal can go beyond a span of 30 years. There comes the fixed immediate annuity that guarantees the holder of the plan a lifetime income as enclosed in the contract. Given this option, why keep on scratching your retirement kitty when you can surely purchase an immediate annuity using a small percentage from that account.
Of late, immediate annuities have earned considerable attention. There are provisions for you to buy the annuities in single payments and still get back returns after 30 days. An agreement of this nature is referred to as Single Premium Immediate Annuity. This type involves a single deposit of money from the contract holder. Other forms of immediate annuities have the option for making regular payments at intervals that are specified in the contracts. Whichever the case, you are bound to start receiving returns every month 30 days after you submit the full amount of money to the company processing your plan.
There is confusion in the market about annuities. The public associates ‘annuity’ with ‘variable deferred annuities’. The latter has incorporated active investment with life insurance. Such a product is the outcome of being pushed by agents income is on commission. Annuities are however an extensive field with a wide range of options. In this society, there are those people who did not plan early enough but are eager to be guaranteed a return. Look no further if you are among them. Stand up, seize this excellent opportunity, and grab an immediate annuity to address your issues. The amount you receive will be based on the following factors.
1. The amount of premium you deposit in your contract account.
2. The duration of time over which the plan has been purchased
3. The guarantees offered by the company.
Note that the rate of return on this annuity can be either fixed or variable.
Below are benefits of immediate annuities:
a. It is very easy to understand them because they are simple in nature.
b. They may guarantee you greater returns.
c. Taxation on your funds is deferred until when payments begin.
d. It takes a very short time for you to qualify for benefits as soon as you complete payment for the purchase of the contract.
e. The payouts can be spread over a long period during your lifetime or over a specific period.
f. Where the terms are fixed, the returns are quite high.
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