==== ====
Fixed Annuity Rates - There are many factors to consider when investigating an inforce fixed term
annuity. While there are many pros and cons, the consensus is that investing the time to find out
more about an inforce fixed term annuity is a good investment of time and effort. Safety, yield, and
security of title are areas of interest.
http://www.fixed-annuityrates.com
==== ====
Choosing the best fixed annuity for your retirement portfolio can be an important, life-long
decision. There are so many nuances to annuities regarding interest rates, lengths of term, issuer
fees, payout schedules, on-going spousal benefits, family benefits in case of death, etc, it can
often be a very treacherous and frustrating process examining the unique attributes of each anuity
offered.
The key to making the right investment decision is taking the time to gain proper knowledge and
understanding of the annuity market. Many people obsess and analyze when it comes to things
like buying a car, advising on the right college or education decisions for their child, or picking the
right house. Yet, many people neglect properly putting in the time to analyze the right annuity
investments.
Further complicating the matter, many people turn to professional insurance or financial agents
that don't truly have their best interests at heart. Unfortunately, most agents are focused on
"selling you" the investment that's best for their commissions, versus truthfully answering your
questions and recommending the best annuities based on your financial and family situation. In
this article, we discuss some of the falsehoods and myths that some agents say, or lead you to
believe, to close the sale. If you hear these things being uttered from the lips of your advisor, find a
new one!
"Annuities Are Risk Free"
It's true that annuities CAN be a very safe investment. A fixed annuity, with under $100,000
invested can be very safe, like Bank CD's and government bonds. The best fixed annuity can still
get you 8% in today's economy making it a great option, when considering its level of security.
However, many annuities are anything but safe. Variable annuities allow the investor to invest in
normal investments (while keeping the tax deferral benefits of an annuity), such as stocks, bonds,
or other monetary instruments. The level of risk of a variable annuity depends on what the investor
invests in, if they invest in risky stocks, then the annuity is very risky.
Due to the current economic climate and recent troubles of various financial institutions, a valid
investor concern has to be the potential for the issuer to go bankrupt. Luckily, most US states
protect annuity investors against issuer bankruptcy from anywhere to $75k-$500k. However,
anything you invest over your state limits, is at your own risk.
"Annuities Are Always a Good Investment"
Yes, especially in this climate, where the best fixed annuity can still get you 8% interest, annuities
can be a very good investment. However, annuities are not always a good investment, it depends
on your situation. Annuities come with penalties for investors who want to back out, or withdrawal
funds from their annuity before the age of 59 and a half. Make sure to consider your entire
financial portfolio's liquidity before investing a large amount of your money in an annuity.
"This Annuity Is the Best Annuity on the Market"
It's true, some annuities, from some issuers are, all things considered, better than others -
obviously. However, the best annuity for you...depends on you! Your situation influences which
annuity is best for you. How old are you? How long is the annuity fixed rate guaranteed for? What
is the interest rate? What are the penalties, if any, for early withdrawal? How much can you
withdraw per year, if you need to? Does the annuity provide protection for your spouse if you die
before the end of the annuity? Do you want a life-long, or fixed period annuity? What are the
insurance company fees? All of these things differ in annuities. Do you have a family you want to
ensure is taken care of? Some annuities allow for tax or monetary benefits in the case of your
death.
"You Should Invest All Your Savings into an Annuity"
This is not necessarily wrong, and depending on your situation, it may be a smart decision. But if
your agent is attempting to convince you to invest as much as possible, without asking the
questions they should, to properly know your situation, they are not acting in your best interest.
Always assess your potential need for liquidity before investing the lion share of your funds into a
long-term annuity.
John C. Ryan is a professional writer, providing sound advice on how to choose the best fixed
annuity. At our website, we aim to connect our readers with only the most honest annuity agents.
Come see us for more advice regarding common anuity myths and misconceptions.
Article Source:
http://EzineArticles.com/?expert=John_C_Ryan
==== ====
Fixed Annuity Rates - There are many factors to consider when investigating an inforce fixed term
annuity. While there are many pros and cons, the consensus is that investing the time to find out
more about an inforce fixed term annuity is a good investment of time and effort. Safety, yield, and
security of title are areas of interest.
http://www.fixed-annuityrates.com
==== ====