Is it advisable to invest in immediate annuities.
Are immediate annuities advisable? Many people are asking this question and thanks to the many financial investment options available in the market today. For many, they seem to have passed their due date, since they were popular ages ago. First things first, they are good just as much as they are not for everyone. If you are the kind of person who is looking to have a secure retirement with some regular monthly income (which you get to decide the moment you sign the contract) then immediate annuities is one of the best way to go. At this stage, you can decide what percentage of your money you want to go into immediate annuities. You can place the rest of your money in other investments and be sure that your needs are covered whenever you retire. You can choose to have the income for a set number of years to supplement your income even before your retire or for the rest of your life.
There has been a lot being said around about how to keep up with inflation when you have invested your money in immediate annuities. First, you cannot keep up with inflation with a fixed income with immediate annuities. This may be a downside if you haven’t taken care of it in your contract. However, you can decide to receive a smaller income at the beginning of the annuity and increase it over the years to cover you against inflation. The other option is to include an inflation rider, even as it will cost you more in the long run to have it.
Aside from the advantage of security of income for the rest of your life, you have the advantage of not surrendering this income to creditors no matter how indebted you are. This means if your finances are not all secured from investors, you can have a percentage of it in immediate annuities to secure your future and immediate finances.
Immediate annuities are flexible, so you need to ask your insurance company of the packages that may be available for you. Insurance companies have packages that will work for couples, single people, and people with assets and those who want to have some income for some time. While immediate annuities are popular with retirees, it is considered good for anyone who wants to invest his savings in a scheme that will supplement their income for some time in the near future.
A huge portion of what you get from immediate annuities is non-taxable, which is also one of the best advantages. There is nothing better than not having the taxman on your face with every kind of income you are gaining from your retirement investment. At the end of the day, if you are more concerned with financial security, immediate annuities will be the best way to go. If you want to have a relatively taxable income that will take care of your needs as you grow older, immediate annuities is definitely the best way to invest your life’s savings as you grow older.
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