We have heard enough from insurance agents! Now, it is time to hear what the people – the annuity owners and other investors – are saying.
Several firms specializing on financial planning report that there is a long list of people who had profited from purchasing different types of immediate annuities. It has been reported that for the last ten years, immediate annuities, especially the immediate fixed annuity, have become popular with a lot of investors because of it’s secure, feasible, and reliable investments.
Investors react to immediate annuities differently. Some of them agree that it can be a secure, reliable, and feasible investment. On the other hand, some people argue that it is not a profitable investment tool. These differences in opinion are, of course, a result of their different experiences with the annuity. Let me give you a brief summary of the discussions, testimonials, reviews, and comments about immediate annuities that I came across on the most powerful technological invention on communication – the internet or the World Wide Web.
Those who consider the immediate annuity as a secure, feasible, and reliable investment tool say that:
1. An immediate fixed annuity is a good investment choice if you want your income to last a lifetime. It guarantees that you will not live longer than your money. As a result, you can just sit back and relax. You do not have to worry about unmindful and careless spending that will make all your money slip off your hands. With this annuity, you are given the power to budget your money on a monthly basis.
2. It is appropriate for people who have saved but, unfortunately, failed to save enough for their retirement. The money you invested in an immediate annuity grows through the interest rate specified in your annuity contract. Moreover, if it is a fixed annuity, it is tax deferred. This means that your money will grow faster.
3. It allows investors to save a huge amount of money from taxation
4. It is recommended for an old investor who does not need to gain access to his capital before the contract’s maturity date.
5. Your money is guaranteed by the issuing insurance company.
6. Your investment is not going to be affected by market downturns, recessions, or economic depression.
Those who think that the immediate annuity is not a profitable investment say that:
1. Most annuity owners sell their annuities because they do not gain anything from it. That is why the number of articles online about how to sell your annuity is increasing.
2. Annuities in general are only offered by insurance companies because these guarantee them a huge profit margin.
3. It is only useful for sales agents who receive a commission for every annuity contract they have sold. Some people think that sales agents do not really care for the welfare of their clients; they only care for the money they could get when they succeed in convincing clients to buy annuities.
4. It does not allow annuity owners to have access to their own capital.
5. It does not allow you to profit from a rise in the stock market.
These are people’s basic arguments about the immediate annuities. Although these are important for your own assessment, you should not solely rely on these testimonials. Talk to financial experts you trust. Compare annuity quotes and rates from different sources. There might come a time when you no longer have to rely on other people’s opinions because you already have a first-hand experience with this kind of annuity.
Answering these questions is important because each of our partners will provide you different rates depending on your individual circumstances and situation.