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Are annuities a stable investment to make money at 82 years old?
Wiki User
∙ 13y ago
At 82, Fixed or Fixed Indexed Annuities are the only way to go for someone that age. Make sure its NOT a variable annuity.
Wiki User
∙ 13y ago
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Strathclyde Associates issue What are bonds in financial terms?
Bonds are issued by governments and companies in order to raise money, and are a relatively safe investment. Bonds are usually seen as a long-term investment and can have terms of up to 30 years, although five to 10 years is the normal investment period. Many fund managers use bonds as a stable element in unit trust products.
Why would a deferred annuity or annuities due be preferred as a retirement investment?
There are many factors you need to consider to determine what is your best option. Your risk tolerance, how much money you have to invest, your timeline in retirement, and if you have enough years to recoup a large loss in an investment to stay on track for your retirement. If you are in the growing phase a mix of a number of products is suggested. If you are closer to retirement age, look at safer products.
Understanding Fixed Annuities As A Retirement Savings Option?
Fixed annuities are a way to invest money for retirement. They are policies sold by banks or insurance companies that guarantee a steady stream of income over a certain period of time. They are not appropriate for all households and often have complex terms that can be confusing. Most fixed annuities are not intended to be the only form of retirement savings. Anyone considering investing in a fixed annuity as an investment should understand some of the advantages and disadvantages of this financial option. Fixed annuities guarantee set payments for the term of the policy. This frequently means the life of the policyholder. The payments can be made in monthly installments or as annual lump sums. This is helpful for people who might run out of savings from other retirement accounts. Fixed annuities are also a good choice to fill short-term gaps. Some annuities will pay out a certain value for a limited period such as five or ten years. Annuities are a very safe investment. The money is guaranteed to be paid back to the policyholder. If the insurer becomes unable to make payments or the company falls into bankruptcy, then the government will repay the value of the policy. The set amount of the payments also means that the annuities are not affected by market fluctuations or changing interest rates. A disadvantage is that fixed annuities tend to be much more costly than many other types of investments. Some require a large upfront lump sum payment and others could require decades of investment before the policy activates. The cost is sometimes not justified because the amount of money the investment earns is very small compared to other options even though it is guaranteed. Fixed annuity contracts are complex and cannot be modified. This means that the value of the payments and the policy cannot be increased without penalties. The complexity of the contracts could also result in an overwhelming amount of fees and unforeseen deductions that reduce the overall amount of money received. A financial professional should review a fixed annuity before a policy is purchased.
Definition of Average Rate of Return?
Method of investment appraisal which determines return on investment by totaling the cash flows (over the years for which the money was invested) and dividing that amount by the number of years.
What is payback method on investment appraisal?
In payback period of investment appraisal method all cash inflows and outflows are analysed and find out that in how many years investment proposal will earn the invested money.
What are some benefits of keeping money in investment trusts?
Some benefits of keeping money in investment trusts include higher returns on investment, have a minimum of five years to mature, one can borrow money to buy the shares, one can trade at a discount and one can trade the shares at the stock exchange market.
What has the author Weyman Lee written?
Weyman Lee has written: 'An essay to ascertain the value of leases and annuities for years and lives' -- subject(s): Annuities
What Are Some Good Things About Fixed Annuities Rates?
Fixed annuities rates means that the amount of interest a person owns downs not go up or down. As the term annuity also suggests, the interest on these funds is paid out yearly. Although these funds are an investment, it is also necessary for a person to shop around to secure the best rate. Technology can help a person skip this step, if he goes to the right site, but it is still best compare several sites to see if the rates quoted actually match from company to company. Fixed annuities rates generally are offered on fixed rate annuities, although including this information is something most people will find insulting. Annuities are usually bought through an insurance company. An investor put in an initial, usually large amount, and receives payments at a later date or at a series of specified dates. Before the annuity matures, the insurance company can invest it to make sure a person gets a larger payment at the end. The idea is that these payments can help a person get through a tough time or use the money as a retirement strategy. While fixed annuities rates will never go up, there is another side to the rates. The rates can never go down on the annuity either. Annuities are a good choice for someone who has a large sum of money he does not need immediately. The sum can help get him through his golden years. What a person does with the money is up to him. He can even choose to consolidate it with the companies that help a person get all the money from their structured settlements or annuities. Fixed annuities rates do change from year to year, but only when they are purchased. Once a person puts his money in this type of insurance policy, it will earn interest at this rate until it matures. When the policy matures, it no longer earns interest unless a person puts the money into another fund that bears interest. For many people, the idea is to use this money to cover their living expenses.
William Shakespeare spent five years working for a theater group to make money for an important investment what was the investment?
Many of the co-owners also invested in the Globe playhouse in 1599 and in Blackfriars in 1608.
Do solar panels save you money?
Solar panels can save money, if you buy the panels for $15,000 the yearly savings would be about $600.00 and you would recoup your investment in 17 years.
Jean will receive 8500 per year for 15 years if a 7 percent interest rate is applied what is the current value of the future payments?
If based on the present value of annuities Taking a factor of 9.1 Present value of the 15 years annuities is approx $76,506
How long can the accumulation period be for immediate annuities?
This depends on the company but usually anywhere from immediately to three years.
