Annuities are a great investment. They can be a little intimidating at first because there are so many annuities to choose from and so many insurance companies offering annuities. It does not help that most insurance companies use insurance jargon to name the annuity.
The good news is that annuity confusion is easily cleared up once you understand the basics. There are only four kinds of annuities you need to worry about. The first is a variable annuity. A variable annuity is invested in the market. The second is a fixed indexed annuity, also called an equity indexed annuity. A fixed indexed annuity is not invested in the market but offers market-like returns with zero risk of loss. The third is a fixed interest annuity or just a fixed annuity. It pays a fixed interest rate a lot like a CD. Fourth, the immediate annuity is not complicated either. True to its name, it pays an immediate income for a set period of time.
Of course, all annuities have many details associated with them. Basic knowledge of the simplicity of each basic account will help greatly when trying to understand the rest of the details. From the basics, each contract has its own benefits or options as well as its own rules and regulations.
To learn more about the basics of annuity investing read - The Different Types Of Annuities
Also read - What Are Annuities? Fixed, Indexed, Variable?
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