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Annuity Rates, For A Well Financed Future.

Annuity is an equal payment, which a person has to give out and in return, gets some payments at given intervals. It can be monthly or yearly. The payments can be made in a contingent or fixed period. Annuity is generally associated with retirement because, a high number of these people seek for the annuity services. The annuity rates therefore provide you with a multiple of annuity guarantees with a high interest rate in the end. This is one of the best ways of planning for your financial future.

In order for you to get the best annuity rates, you are required to start planning early. Do not wait until the peak of your career for you to start looking for an annuity. Make an elaborate research about all the types of annuities that are available. This will help you in selecting the one that first your personal interests. Annuities a requited to insurance policies. It is quite important that you go for the best provider .Get a company that is able to match your personal requirements. There are fixed annuity rates and variable annuity rates. You are needed to choose only one and then stick to it for you to see its effectiveness. Ensure that you get these services from a company that is highly recognized and has a good reputation.

The annuity rates can be tracked through different contracts such as the differed rate. This is one of the long-term retirement accounts that is destined in the improvement of your assets and provide you with an income that is steady when you have retired. An immediate annuity rate is yet another contract that you are provided with by a reputable company .The annuity begins immediately after you have deposited your money to your insurance company. The quoted rates for this immediate annuity are offered in a different format from the interest rates that are given in the differed annuity.

The annuity payment rates vary from time to time. The variation come into place depending on the amount that you have invested and the periods of time that you want to start getting your payments. For instance, you will be required to pay smaller annuity rates if you start your payments at the age of twenty. This is in regard that you will get the payments after your retirement. This may seem to be a long time but it is very effective in the end.

The annuity rates have very many benefits to an individual. For example, immediately after starting your payments, the gains that you make are taxed. You are also not limited on the amount of money that you want to contribute to the annuity. Equally, the return rate that you get from these rates is excellent. Most investors that are risk averse take annuities because of a high guarantee of a steady income. The annuity rates are one of the bets investment methods that have been forwarded. Get one today if you want to have an improved financial future.

Seeking help from an adviser that provides whole of market can be the only way you can be sure of getting the best annuity rates, whatever the type of annuities.

Image from page 345 of “The World of fashion and continental feuilletons” (1824)
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Identifier: worldoffashionco13lond
Title: The World of fashion and continental feuilletons
Year: 1824 (1820s)
Subjects: Fashion
Publisher: London : Published by Mr. Bell
Contributing Library: Harold B. Lee Library
Digitizing Sponsor: Brigham Young University

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Text Appearing Before Image:
pected. The Duke de Grammont, father ofthe Duke de Guiche, and of the Countesses of Tankertilleand Sebastiani, has also gone to his eternal rest. TheDuke was eighty-one years of age. He instituted a suit inthe French Courts some years previous to his demise, for thepurpose of establishing his claim to the citadel of Blaye andits dependencies, and the Cour Royale of Bourdeaux decreedthat at the expiration of three years the State should pay theDuke an annuity of lOG.OOOfr., or reinstate him in the pos-session of the citadel. The present Duchess de Grammont issister to Count Alfred DOksay. We have also to mentionthe death of Vice-Admiral Lambert, a worthy and merito-rious officer. The report propagated with so much industry at the westend of the town, that a foreign prince nearly related to anillustrious personage has been smitten with the personalcharms of an English lady of rank, has not the slightestfoundation in fact, and is calculated only to give uunecessarjpain in a high quarter.

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If you are retired, or approaching retirement, it is essential that you understand annuities.

Why, you may ask?

Because as you approach that date when you will quit your full time job, you will realize that your paycheck will go away. If you are lucky you may have a pension.

It likely will not be enough to cover your monthly expenses.

You will then look at your Social Security income. It, too, will probably not be enough to cover your monthly expenses.

To get your free ebook “How To Avoid Annuity Traps” visit: http://retirementplanningmadeeasy.com/annuity-traps

To fill in the remaining gap between your monthly income and monthly expenses, you will have to withdraw money from your retirement nest egg.

Your goal should be to fill this gap in as low risk and low cost a way as possible that will give you the best likelihood of success over the length of your retirement.

Annuities will likely serve a role with filling this gap.

So you need to make sure you understand how they work, the different types of annuities, and the pros and cons of annuities.

The 2 main types of annuities are:

1. Variable
2. Fixed

Variable annuities take your money and invest them in sub-accounts (these are like mutual funds). The sub-accounts can go up and down in value.

If the sub-accounts perform well, your variable annuity value will go up.

If the sub-accounts perform poorly, your variable annuity value will go down.

There are no guarantees when it comes to how your sub-accounts perform.

Variable annuities are notorious for having high fees. The 4 main fees of variable annuities and the approximate costs that you may pay with these fees are:

1. Mortality and expense – 1.5%
2. Management fees – 1.5%
3. Income rider (optional) – 1.0%
4. Administrative fee – 0.15%

These fees can add up to over 4%, depending on if you attach an optional rider to the contract.

Some of the downsides of variable annuities include the fees obviously. Also, they don’t have as many contractual guarantees as fixed annuities. You can lose money with these contracts.

So if you are looking for contractual guarantees, variable annuities may not be the best place to look.

The other main type of annuity is the fixed annuity.

With a fixed annuity your money is not invested in the market, so you have no market risk.

Most fixed annuities have no fees, such as the Single Premium Immediate Annuity (SPIA) and the Multi-Year Guarantee Annuity (MYGA).

Even fixed index annuities can have no fees if you choose to not attach an income rider to them.

Fixed annuities also have more contractual guarantees. Since your money is not in the market it can’t go down with the markets. This can be very important to retirees that don’t want to have much risk in their portfolios.

Types of fixed annuities include:

1. Single Premium Immediate Annuities (SPIA)
2. Multi-Year Guarantee Annuities (MYGA)
3. Fixed Index Annuity

The pros to a fixed annuity include low (even no) fees. Unless you attach an optional rider to a fixed annuity, there is a good likelihood it will have no fees.

Fixed annuities also provide contractual guarantees. This is very important when you are planning for your retirement income.

The index annuity can be a good vehicle for income riders. These help you with your retirement income planning as well.

And the Multi-Year Guarantee Annuities (MYGA) provide a contractually guaranteed interest rate for a specific time period. And like all annuities, the interest credited grows tax deferred until you pull the earnings out of the annuity.

The downsides to fixed annuities include surrender charges. Even variable annuities will often have these surrender charges. So make sure before you purchase an annuity that you understand the purpose and can commit to it for the duration of the surrender charge.

MYGA’s can have interest rate risk. If you lock in a rate for say 5 years, then if rates in the economy rise you may miss out on the higher rates because your money is inside the 5 year annuity.

A way to minimize this risk is through “laddering,” by spreading your purchase among annuities with different maturities. When one annuity matures you can take that money and invest it at the higher rate prevailing in the market.

And lastly, fixed annuities are conservative financial products. This means they should not be expected to grow as much as more aggressive financial products (like an index fund that tracks the S&P 500).

Ultimately, with less of a growth component, fixed annuities may not keep up with inflation as well as more aggressive growth financial products.

But the flip side to this argument is that they are conservative products. And you can’t lose your money in them due to market down turns.

To get your free ebook “How To Avoid Annuity Traps” visit: http://retirementplanningmadeeasy.com/annuity-traps

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