Why You Need Annuity- by djsgjg0045


									Most people wait till retirement is near to decide about how to save enough for old
age. This is a terrible approach and can lead to disaster. You need to start saving from
now to guarantee a good life after retirement. Saving options like certificates of
deposits or CDs are not viable for they require direct management. You might prefer a
hassle free retirement spent mostly playing golf or traveling to exotic places. You
deserve a peaceful and enjoyable old age after having spent so many years slaving to
fulfill your obligations.
  Retirement is the time for enjoyment and spending quality time with oneself and
one’s family. To make your retirement smooth it is essential to save now. Annuities
are a good savings option. Annuity is basically a type of insurance that provides you
with a cash flow during retirement years.
  Annuity is a kind of investment that you make payment to. You can make a single
time payment in a lump sum or regular payments. In future your investment will start
to make payments to you. Once again you can choose to take payment at one time, in
monthly or quarterly basis. Annuity is basically used to generate an income in the
retirement years. How much money you get as payment depends on a variety of
factors. The most important is the amount you originally decided to invest. Another
important factor that determines the amount of payment is the time period for which
you require payment; do you want payment for a lifetime or a fixed period of time?
  The first thing you need to decide before buying annuity is what kind of annuity you
require. There are fixed annuities and variable annuities. In case of fixed annuity the
amount paid out is fixed or the amount increases according to a fixed percentage. So
here you are guaranteed payment but the amount of pay will not change. Variable
annuity is the kind of annuity where the amount paid out changes depending on
various factors.
  In this type of annuity your money is invested and depending on the success or
failure of the investment the payment amount varies. If you believe in capital gains
through stock investment this is a good option for you. In annuity your premium is
always safe no matter what happens to the stock market. A minimum income is
guaranteed irrespective of market fluctuations. So here you have the option of
increasing your earnings considerably without the risk of loosing all your money.
  There are also immediate annuities where you only make a single time investment
and start getting payments immediately. This is great for people planning an early
retirement. Deferred annuities are those where you have to wait a while before
payments begin. Here your taxes are also deferred as you do not need to pay taxes on
interest accumulated till the time of withdrawal.
  If you are confused about deciding the best annuity plan for you then visit
totalreturnannuities.com. This site will help you make your choice. You will find
detailed information regarding the meaning of annuity, different types of annuities
available and the benefits of each. Totalreturnannuities.com also has the added
advantage of annuity calculator where you can calculate your prospective returns
before making the final decision.

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