Purchasing Annuities

An annuity is a guaranteed income plan you purchase.

Purchasing annuities. Purchasing an Annuity What is an annuity. Many clients purchase income annuities to help cover their essential expenses as defined by them in retirement. Periodic payments for a specific amount of time.

When its time to retire you have some additional optionsoptions that can change your finite savings into a monthly lifetime income called an annuity. Income annuities can provide the confidence that you will have guaranteed retirement income for life or a set period of time. Annuities provide three things.

The monthly payments you receive are based on. You can buy an annuity with a lump sum or a series of payments. The objective of purchasing an equity index annuity is to realize greater gains than those provided by CDs money markets or bonds Indexed annuities represent about 30 of all fixed annuity sales in 2006 according to the Advantage Group.

Although annuities are often sold as investments they shouldnt be thought of as an investment product. Fixed annuities in particular offer a unique asset classan investment that is guaranteed not to decrease and that will actually increase at a specified interest rate and often potentially more. This is likely to be one of the most important financial decisions of your life and it is crucial that you get it right.

This may be for the rest of your life or the life of your spouse or another person. Financial planners are not usually able to say that anything is guaranteed because we do not know the future. An annuity is a contract in which an insurance company makes a series of income payments at regular intervals in return for a premium or premiums you have paid.

A smart annuity purchaser does his or her research before taking the plunge. Annuities are lifetime income plans you purchase. People typically buy annuities to help manage their income in retirement.