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| Retirement Income Options 09/17/2011 Saving money is simple, in theory, yet in execution it is never easy. If it were simple and easy to save money, there would be no need for banks and lending institutions to give credit cards, lines [ ... ] |
Fixed Annuity – Guaranteed Income. For Life. 09/02/2011 Fixed Annuity – Guaranteed Income. For Life. There are very few guarantees when it comes to investing. But when you’re planning for the long term, a guarantee might be exactly what [ ... ] |
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Tired of low CD Rates? Have rates on your CD’s been going down? If you’re tired of not earning any money on your CD’s look no further than a Fixed or an Equity Indexed Annuity. Fixed annuities almost always pay a higher rate of interest than do CD’s. Equity Index Annuities offer you the highest potential rate of return while still guaranteeing you a small rate of interest if the stock market goes down. Fixed Annuity: A Fixed Annuity offers a guaranteed interest rate for a set period of time. During that time you generally have the ability to withdrawal 10% each year should the need arise. In addition if you become terminally ill, confined to a nursing home or die they will generally end the contract early at no penalty and give you or your beneficiary complete access to 100% of the money. The best part is, is that you receive tax deferral while your money remains inside of the annuity. That means if you don’t withdrawal the interest from the account you don’t pay taxes on it. You only pay taxes when you withdrawal the earned interest. So again a Fixed Annuity, in most cases is a preferable investment to that of a CD. Equity Indexed Annuity: An Equity Indexed Annuity is a mix between a fixed annuity and investing directly in the stock market. To better understand this lets do an example. Let’s say you are trying to figure out whether to invest in a diversified portfolio of mutual funds (stock market) or in a Fixed Annuity from Annuity Rate Shopper. The mutual funds offer you the greatest possibility for growth, while the Fixed Annuity although limits your growth offers the most safety with a guaranteed interest rate. An Equity Index annuity allows you to choose how long of a contract you want (3,5,7 or 10 years). As long as you leave your money in the contract for that time period you will receive the greater of 3% per year or the stock market return whichever is greater. The 3% may be less than a traditional fixed annuity but you have the ability to participate in the upside of the market.
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