Learning About Annuities And Annuity Quotes
- Author Windsor Thompson
- Published January 17, 2011
- Word count 516
Many people have heard about annuities but really do not understand what they are all about. If you are one of those people perhaps this article will be of some assistance. Annuity quotes are from an insurance company telling you what your income from the annuity would be depending on the type selected.
If you want to have some extra money, when retirement time rolls around, and you want to have the money you invest earn interest without paying taxes perhaps this may be the type of investment you would be interested in. There are lifetime and short term annuities available.
Annuities are written by insurance companies who must be licensed by the state. They offer you a contract which will give you an income on money you invest. This requires that you make an initial lump-sum payment, deposit, premium, investment or contribution which will earn interest. There are a number of different annuities to fit many situations.
First, there is no limit to the amount of money you can put into this fund. There are fixed annuities and variable annuities. The fixed annuities can be broken down into immediate and deferred. In other words, an immediate annuity will start paying you immediately and a deferred puts off paying until a date you indicate.
Deferred annuities are further broken down into Fixed Index, Multi-Year Guarantee Rate and Traditional Fixed. The way the interest is compiled differs with each one. Variable annuities have a stock market portfolio and there is no guarantee regarding the amount of interest earned. It can be very high or very low.
The most important thing, when considering making an investment of this kind, is to contact the prospective company and discuss with them exactly what you want to accomplish. Do you want to have more income at retirement? Do you want a short term or a life term policy? Do you want a death benefit so that if you pass away your heirs receive what is left in the fund? These are all questions that need to be answered.
It must be remembered that the rate of return depends entirely on the type of product chosen. Some, such as variables have a fee attached that is charged with each portfolio transaction. One advantage that many people find is that you do not have to pay taxes on the interest earned until it is withdrawn. Also the funds are paid out as agreed in the contract.
Some people who have 401Ks or IRAs when they retire roll this money over into an annuity as they will not have to draw it out at a certain time as those investments require. It can stay in the fund and earn interest until you decide you want to start drawing on the policy.
People who are still working sometimes have a monthly amount deducted from their paycheck and paid directly into an annuity account. This allows the money to earn interest and build up until they are ready to stop working. This usually amounts to a considerable sum and helps greatly with their income upon retiring.
All you need to know about annuities and annuity quotes in the UK now in our complete guide to find a top UK annuity on http://www.annuitycentre.co.uk
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- “Shadowland: The Tragic Ordeal of Frances Farmer and the Machinery That Broke Her.”
- “Glenn Ford: Hollywood’s Reluctant Heartthrob Who Played by His Own Rules.”
- “From Navy Tough Guy to Hollywood Everyman: The Life and Legacy of Ernest Borgnine.”
- Nancy Meyers-Inspired Kitchen: California Casual with Vintage Carved Door Charm
- Yellowstone-Inspired Ranch Farmhouse Style: Rugged Elegance with Rustic Antique Doors
- Used Master Prime Inspection: 5 Critical Checks to Avoid Refurbished Scams
- Staying Charged: A Guide to Electrolyte Balance for Health and Exercise
- Creating a Profitable Business with PLR Planners and Printables
- How to Spend 48 Hours in Cape Town: A Quick Itinerary
- “Wounds That Time Couldn’t Heal: Watching The Best Years of Our Lives Through the Lens of Memory and Mourning.”
- Understanding an ACL Tear
- Top 5 Funniest Gag Gifts for Your Best Friend
- Why Second Hand Pianos for Sale Are a Smart Investment
- Finding the Right Piano Shop Near Me: A Guide to Second Hand Pianos
- “Mira Sorvino: From Oscar Glory to Hollywood Silence.”
- Ireland Sino Institute Launches 2025 China Internship Program
- “Beyond the Spotlight: The Rise and Fall of Dorothy Dandridge.”
- “Through the Mist of Venice: Revisiting Don’t Look Now and Its Haunting Grip on Grief.”
- The Art of Coaching: Cultivating Growth and Inspiration
- Creating a Holistic Backyard Retreat: Old World Elegance Meets Nature
- Understanding T1 and T2 Transit Documents in EU: Your Complete Guide
- Cryptonews.money: Your Ultimate Guide to Understanding Cryptocurrency
- 15 Basketball Dribbling Games and Passing Drills for Better Ball Handling
- Transdermal Progesterone Cream: Benefits for Hot Flashes and Menopause Symptoms
- Tepezcohuite: The Ancient Skin Health Secret You Need to Know
- Quiet Cars and Busy Calendars: The Overlooked Role of Chauffeurs in Post-July Corporate Travel
- 1031 Exchange
- Breaking Karmic Cycles, Creating a Shiva Altar with Deity Carvings and Sculptures from Mogul Interior
- The Art of Whimsical Carved Wall Art & Eclectic Décor
- “Hellfire and Heresy: Ken Russell’s The Devils and the Fury of Sacred Cinema.”