By: Mike Anderson
Submitted: 2011-03-21 00:52:17 | Word Count: 536
Are you close to retirement? Do you have fears in exhausting up all your finances as soon as you retire? Well, simply wipe off your fears and instead make party plans. Yes, it's an absolute reality since annuities have decided to shoulder all responsibilities throughout your entire retired life. Currently, a fixed annuity is ushering ample benefits to retirees. In fact what can you expect more than getting an assurance of a regular income for the rest of your life?
Why Fixed Annuities?
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Fixed annuity refers to an investment scheme for retirees where there are hardly any chances of encountering risks. Owing to the fixed interest rate facility, investors are ensured no risks at all. Fixed annuity comes as single premium investments where the purchaser is guaranteed a low rate of interest for the whole term of his annuity. The two primary fixed rate annuities that are proving superb for retirees are life annuities and term certain annuities.
Advantages of Fixed Annuity
If you are accessing a life fixed annuity, you need to pay a static amount at regular intervals till you die. This stunning retirement policy permits the applicant to enjoy a regular monthly guaranteed for lifetime. So, you just don't need to worry about your post retirement days. As far as the Term certain annuities go, they permit applicants to enjoy income as per the set amount till the contract gets over.
Fixed annuity distribution can either take place in immediate or deferred form. The Immediate distributions commence usually at the most within the first year from the time the contract was initiated. Deferred annuities pay out at a certain point in the future.
Annuities are designed to boost up your total retirement savings. The interest rates of a fixed annuity range from 3% to 10%, and the duration ranges from 1 to 10 years. Annuities possess more liquidity and tax-deferred benefits in comparison to other schemes.
What Annuities can do for you?
In comparison to other retirement policies, annuities hardly require any management by the investors. Once your agent draws the contract and the premium is paid, simply relax and you are not even required to monitor your investments at all. There are certain fixed annuities that can be set up with an alternate death benefit. In fact, this can be treated as a life insurance without requiring any other policy.
There are no hard and fast restrictions in the context of contributions for fixed annuities. If you are the annuitant, you can go for numerous policies you wish. There are several agents who gift annuities devoid of any tax. Make sure you choose a professional agent and make your deals accordingly. Annuities have played key roles in ensuring affluence in the lives of thousands of retirees.
A fixed annuity is a bit different from that of a variable one. It's a guarantee that retired folks are bound to benefit from a fixed annuity. Fixed annuities can even protect retirees from losing the invested principal. To know more about fixed annuity and other advantages, take the help of an online annuity expert.
