Investors have a number of different options available to them when it comes to annuities; each with different interest rates, costs and other advantages and disadvantages. Keep reading to find out more about annuity options which you may be interested in.
Immediate Annuity: Just as the name suggests, the investor starts receiving their payout from an immediate annuity right away. The payout might continue for the life of the investor or for a specified period of time as set in the annuity contract’s terms. If you withdraw money from your annuity prematurely (in the US, this is before you’re 59 years and six months of age) there are tax penalties, which makes the immediate annuity an option which is largely limited to persons who are of this age or older.
Instead of this arrangement, you could opt for deferred annuity insurance. This defers payouts from your annuity until a date specified in the agreement. In the meantime, the principal of your annuity is invested and is allowed to grow as tax deferred income. This is a very common option and is one of the most popular with people looking for a tax deferred investment vehicle to save for their retirement, much like an index annuity or a retirement annuity. If you happen to be under 59 in age, a deferred annuity is of course the only kind you’ll be able to choose from. However, it’s important to keep in mind that when people talk about deferred or immediate annuities, what they’re really talking about is the payment schedule of the annuity – which is something which investors do have a say in regardless of whether they decide on fixed, indexed or variable annuities.
Fixed annuities are the most popular of any type of annuity, even more so than variable annuities. These investment provide an interest rate which is locked in, making it a safe investment. Fixed annuities are particularly popular when the stock markets are in a decline, since there are fixed annuities with interest rates as high as 8%; very good compared to bonds and CDs.
Variable annuities are the second most popular type of annuity. These investments allow investors to put their principal into the stock market or other investments. There is a higher degree of risk associated with variable annuities, though a well informed investor can exercise some influence on exactly how much risk they’re exposed to.
Annuities are a complex issue and if you’re looking for one of these investments, it may be a good idea to speak with a financial professional before you make a decision.
Image from page 175 of “Cathedrals, abbeys and churches of England and Wales : descriptive, historical, pictorial” (1890)
Image by Internet Archive Book Images
Title: Cathedrals, abbeys and churches of England and Wales : descriptive, historical, pictorial
Year: 1890 (1890s)
Authors: Bonney, T. G. (Thomas George), 1833-1923 Bonney, T. G. (Thomas George), 1833-1923
Subjects: Cathedrals Cathedrals Church buildings Church buildings
Publisher: London : Cassell
Contributing Library: Getty Research Institute
Digitizing Sponsor: Getty Research Institute
Click here to view book online to see this illustration in context in a browseable online version of this book.
Text Appearing Before Image:
poet, whose published verse might have beenvastly augmented had he not destroyed at least half the quantity he produced,it was by his prose writings that, as he himself laughingly said, he made thepot boil. And boil it did, to a pretty tune ; for this often anonymous writerof reviews, who was exceedingly modest and contented in his ideas of remunera-tion, and neither courted nor enjoyed popularity, amassed a library which wasitself a fortune, and left £12,000 to be divided amongst his childi-en. There was close fellowship through many years among these great men anda fourth, who, though falling short of the mark at which greatness can be said tobegin, was not unworthy to be associated in literary labours with two of them,Coleridge and Southey. This was Robert Lovell, who began his intimacy by 440 ABBEYS AND CHURCHES. [GaASMERE AXD publishing-, in conjunction with Southey, a volume of poems, and who afterwardsjoined in other labours—not to mention a wild scheme of emigration—which
Text Appearing After Image:
CROSTHWAITE. included Coleridge, It must not be loft unmentioned tliat the three fellow-poetsmarried sisters, natives of Bristol, named Pricker. The lady who was espousedby Southey died an unhappy imbecile ; and, as is well known, he took for liissecond wife the gifted Caroline Bowles. In the matter of boons and legaciesnot even Coleridge had cause to comj^lain of ill-fortune ; for an annuity of £75,left him by his friend Mr. Wedgwood, who had materially aided his travels andstudies, must have helped him in later years to keep the wolf from the door.Mrs. Lovell, widow of the poet who was brother-in-law of Coleridge and Southey,came to live for a time with the two families, when they occupied in combinationthe plain dwelling-house on a hill overhanging the river Greta. She brouglit herson with her, so that there were in all three families, the children of each havingby consequence two several aunts. It was one of Southeys jests to call theeminence on which their house was placed the a
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