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Saving money throughout your lifetime can be a helpful tool to obtain financial security. It can be difficult to decide which plan is best for you to save the most money for your retirement. Some people choose 401K plans or even IRA's, but there is another way to save money effectively.
AnnuitiesAn annuity is a savings plan used for extended term growth and asset protection that can be used during retirement. Annuities have many advantages over other investment options. Annuities are able to provide a guaranteed interest rate, long-term growth, trust advantages and also secure the principal and earnings of your savings.
With the annuity plan you choose, you are required to make a lump-sum payment or series of payments. The insurer consents to make periodic payments to you beginning at some future date or immediately. There are three types of annuities: fixed, variable and indexed.
Fixed AnnuitiesA fixed annuity is a contract where the insurer makes scheduled payments to you for the period of the contract in dollar amounts. These payments will continue until the annuitant dies. Earnings and principal are guaranteed through your insurer.
Variable AnnuitiesIn a variable annuity, the annuitant chooses from a variety of different asset options, in order to invest their payments. The investment options you select determines the rate of return on your payment and the number of scheduled payments you will receive in the future. The purpose of the variable annuity is to obtain larger payments if the savings performs well. But you will receive lower payments if the savings performs badly.
Indexed AnnuitiesAn indexed annuity is when the insurer credits you with a profit that is determined by an alteration an in index. Also, indexed annuity provides a specified minimum that your contract value will be no less than. This happens regardless of index performance.
The indexed annuity may be a security or may not. These are not listed with the security and exchange commission (SEC). The SEC regulates the variable annuities. The fixed annuity is not controlled by the SEC and is not a security.
What else can I help you with?
Do you pay taxes on income earned in an annuity?
If the annuity is a non qualified tax deferred annuity (an annuity that taxes were paid on the money before they were placed into the annuity) you will pay taxes on any interest growth when it is removed from the annuity. If the annuity is a qualified annuity (no taxes were paid prior to placing the fund into the annuity) you will pay taxes on all withdrawals from the annuity.
What is the primary difference between an annuity and a compound annuity?
difference between an annuity and a compound annuity?Read more: What_is_the_primary_difference_between_an_annuity_and_a_compound_annuity
What gains more interest an ordinary annuity or an annuity due?
ordinary annuity
What is monthly annuity?
The option to get annuity every month is called monthly annuity.
What The difference between ordinary annuity and annuity due?
ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period
What The differences between ordinary annuity and annuity due?
ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period
Can you lose money with an annuity?
Yes, it is possible to lose money with an annuity if the investments within the annuity perform poorly or if there are high fees associated with the annuity.
How can you withdraw money from annuity?
Your annuity policy document should have all the withdrawal provision detailed for you. If not contact the company you have the annuity with and they can give you instructions. Before you withdraw from an annuity be aware of the tax treatment of your annuity withdrawals.
Annuity loans are what type of loan exactly?
Annuity loans are when an annuity holder borrows money against the value of an annuity contract. It allows one to access funds without having to cash out their annuity immediately.
What is a non qualifying annuity?
Perhaps you meant a "non-qualified" annuity? If so, a nq annuity is an annuity purchased with after-tax dollars; conversely, a qualified annuity is one purchased with pre-tax dollars, such as in an IRA or a TSA.
What is the annuity type called that guarantees to pay out an income equal to the purchase price of the annuity?
Refund Life Annuity
Where can the best annuity rates be found online?
There are many websites where one can find annuity rates. Some of these include Annuity FYI, Fidelity, USInsuranceOnline, and Annuity Rates Instantly.
