“Wait, there are different types of annuities?”
If you’re searching for information on retirement planning and finances, you’ve probably discovered the wealth of information available on annuities. An annuity can be an excellent option to add to your portfolio for a guaranteed-for-life income – but choosing the right annuity for your specific needs can be a challenge.
There are several different types of annuities for retirement available to investors today – each offering different benefits. Without consulting a financial advisor, you might be overwhelmed by the available annuity options – many people are. That’s why we’ve created this article, reviewing each of the different types of annuity products and why one type of annuity may be a better fit for you than another.
Your financial needs in retirement are unique – how old you are, when you’re planning to retire, what type of income return you’re looking for – these are all factors to consider before you seriously consider your annuity purchase.
Here are some of the most popular and widely-available types of annuities in today’s market:
Fixed annuities are insurance products that are guaranteed to return both the principal you invest plus a fixed rate of interest. They are very similar in concept to Certificates of Deposit (CDs), except a fixed annuity grows tax-deferred. Fixed annuities are considered to be one of the safest investment vehicles available. Although they are not […]
It Pays To Know the variable annuity is the most complex type of annuity to understand, but with a little work, you should be able to get a basic grasp of how they operate. There is a great deal of research to be done, and a lot of questions to be asked of your financial […]
An Index annuity is a financial product that individuals can use as an investment in their retirement portfolio. Typically, annuities are purchased from insurance companies in one lump sum payment or through a series of contributions. Sold as a contract, the money grows over a period of time regardless to how individuals purchase an annuity. The contract is annuitized at a future date that is agreed to in the contract, meaning the purchaser receives period income payments. Generally, payments are made over a set period of time or for the purchaser’s lifetime.
An immediate annuity is the first of the three major types of annuity investments. The immediate annuity is also called a single premium immediate annuity or SPIA. When you purchase an immediate annuity, you are entering into an agreement with an insurance company to purchase a guaranteed level of income on a predetermined schedule. Simply […]
The hybrid annuity is not your traditional every day annuity. Hybrid Annuities are a newer evolution in the annuity product world and they are best suited to investors who are interested in preserving one’s principle whilst participating in the upside potential that can be yielded from the market. Now lets dive into that a bit […]