Annuity is an insurance product that can help you to provide income in retirement.
A good time to have the annuity is :
a. When approaching retirement age
b. Replace the income from the regular salary
c. You want the peace of that investment will not decline in value
d. Another alternative to certificates of deposit
e. At the time wanted to develop a tax-deferred money to be used at a later date
f. When a non-qualifying funds to invest
Annuity payments can be used for example to the needs of everyday life, an additional payment of social security, children's education fund, to charity, to fund the production of insurance or a source of additional income.
You might think that saving for retirement preparation is something that is difficult, how you will manage the savings after retirement, so you expect after retirement, your income could last longer.
Annuity, might be able to answer what you need, with the annuity, you can manage the tax-deferred until you begin receiving payments. Annuity can also help you manage resources and provide a guaranteed retirement income for life.
Money invested in fixed annuities have a fixed rate of return and tax liabilities. That means taxes on earnings are deferred until you start taking money. This potentially allows you to collect a large amount of money before you pay taxes. when you decide to receive income, you can choose from several options including receiving a fixed payment for life.
The ability to annuitize is one of the best ways to deal with one of the most difficult issues in retirement. Some features of annuities provide a death benefit as an optional one. If you die before you start taking income, annuities can provide a benefit that guarantees the beneficiary who will receive a refund of the principal amount plus investment earnings to fixed rate or income from the performance of sub accounts, depending on the type of annuity you choose.
Tips on buying annuity
- Consult with your financial consultant about what type of annuity is suitable for your retirement portfolio.
- Understand the annuity contract. If you buy a fixed annuity, make sure you know the current interest rate being credited to the annuity.
- Understand a variety of payment options, consider also to equip it with social security.
- Look for a leading pension provider agencies, consumer-oriented and have strong financial.