| Best Annuities: Assessing a Fixed Annuity for Your Portfolio |
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| Written by John C. Ryan |
| Sunday, 14 February 2010 18:34 |
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Having a steady income when you retire creates a challenge. You're no longer have a job and are bringing home a steady paycheck. Many people look for to this time when they don't have to work and they can enjoy life. But there are others who worry about if they will have enough money to meet their needs when they retire. Many employers offer retirement plans that include such things as IRAs and 401K investment options. And while those are nice their limit to how much you can invest in them. A fixed annuity is different because they allow you to invest more and add to your income stream.
Having a steady income when you retire creates a challenge. You're no longer have a job and are bringing home a steady paycheck. Many people look for to this time when they don't have to work and they can enjoy life. But there are others who worry about if they will have enough money to meet their needs when they retire. Many employers offer retirement plans that include such things as IRAs and 401K investment options. And while those are nice their limit to how much you can invest in them. A fixed annuity is different because they allow you to invest more and add to your income stream. Finding the Best Annuities for You Think of a fixed annuity as a saving plan for old age. You want to get a good annuity quote because you're going to be putting this money back for use after your 60. This is just another way you can add to your retirement planning. Fixed annuities provide a regular monthly payment just like a paycheck what you have retired. It's like working only you don't have to. If you're looking for ways to increase your portfolio options and add to them a fixed annuity is an excellent way to go but you might not want to depend solely on your annuity. A fixed annuity investment fund is a great way to invest when your IRA and your 401K are full. Guaranteed To Last a Lifetime One of the great benefits of a fixed annuity is that it's guaranteed to last as long as you live. Many things like Life Insurance have a cap on them and if you outlive the policy or the investment you lost everything. Not so with a fixed annuity. Your monthly income is based on what you put in and your life expectancy. If you live beyond what they expect you to you still get paid. Tax Deferred Investments Tax deferred investments work harder for you and a fixed annuity is tax deferred. The amount that you invest, called your premium, is tax free while it is growing. You do need to know though that the premium you pay for your fixed annuity is from taxed income unlike a 401K investment which are tax free beforehand. You are allowed to remove your investment early but there are strict penalties that apply if you do. To get the best annuities for you need to call around a get different annuity quotes. Make sure you check out any companies offering fixed annuity. There are companies out there that provide rating systems that let you know exactly how well an annuity company operates. You'll also want to make sure you read the fine print. Many times there can be hidden fees that aren't shared up front that can cause problems. You don't want to get hit with any unnecessary fees that you don't need. So do get an annuity quote today and find out the best annuity options for your retirement portfolio. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. John C. Ryan writes about choosing the best annuities for investors based on their individual goals and situation. For more advice on choosing a fixed annuity see his website. |