It seems that the investment world has completed a full cycle. Sometimes back when the bull market was propelling the retirement savings of average member in the society, the scenario was that everyone was rushing for annuities to safeguard their retired life. Today again we are experiencing the same thing as people are now rushing up for annuities and the sales of annuities have gone up by 60% in the first part of the current year.
Annuity in the recent years has become extremely popular method of investing money especially for those who have recently retired or who are going to retire soon. You may wonder how it is possible for the same investment attracting so many investors despite the constant fluctuations in the market. There is of course a difference between the investments made in annuities in the past and those made now.
Investments in the past were more on the variable annuities. These annuities had tax-deferred growth while the choices are those that tally the mutual fund benefits. To day the emphasis has shifted on the fixed annuities. The objective has therefore shifted more to preservation of capital instead of growth.
Natural question that arises therefore is that is it correct that the annuities play a major role in respect of your retirement portfolio?
There are several benefits that accrue on you when you make major investments in annuity.
These benefits are ?
* Tax deferral of 401(k) and IRAs.
* No limit on investment.
* Long term capital gains.
* Ability to protect capital in a fluctuating market.
* An income that outlives you.
* All the benefits are available at one go.
Only problem that you would encounter in obtaining the fixed annuity is that they come with a number of ad on. The commercial world is fiercely competitive on one side on the other hand every entrepreneur wants to outsmart their rivals. That is why you will often found the offer of fixed annuity coming up with a number of other fees. These include the return-zapping fees, penalties that may be withdrawn and also other hidden executive fees.
Problems with such cases are that you may often end up paying much more than you really deserve to pay. Therefore you must remain careful about the gimmicks played by the unscrupulous traders on the web.
Good news for you is that several low cost versions of the annuity are now available. With affordability there has been a simultaneous growth for buying annuity. ?A year ago, I would have washed my mouth if I said the word annuities? said financial planner Harold Evensky of Coral Gables. ?Now I believe they can be an important part of retirement planning.?
Many investors believe the same thing about annuity today and that is why its sale is constantly on the rise in the financial market.
Annuity in the recent years has become extremely popular method of investing money especially for those who have recently retired or who are going to retire soon. You may wonder how it is possible for the same investment attracting so many investors despite the constant fluctuations in the market. There is of course a difference between the investments made in annuities in the past and those made now.
Investments in the past were more on the variable annuities. These annuities had tax-deferred growth while the choices are those that tally the mutual fund benefits. To day the emphasis has shifted on the fixed annuities. The objective has therefore shifted more to preservation of capital instead of growth.
Natural question that arises therefore is that is it correct that the annuities play a major role in respect of your retirement portfolio?
There are several benefits that accrue on you when you make major investments in annuity.
These benefits are ?
* Tax deferral of 401(k) and IRAs.
* No limit on investment.
* Long term capital gains.
* Ability to protect capital in a fluctuating market.
* An income that outlives you.
* All the benefits are available at one go.
Only problem that you would encounter in obtaining the fixed annuity is that they come with a number of ad on. The commercial world is fiercely competitive on one side on the other hand every entrepreneur wants to outsmart their rivals. That is why you will often found the offer of fixed annuity coming up with a number of other fees. These include the return-zapping fees, penalties that may be withdrawn and also other hidden executive fees.
Problems with such cases are that you may often end up paying much more than you really deserve to pay. Therefore you must remain careful about the gimmicks played by the unscrupulous traders on the web.
Good news for you is that several low cost versions of the annuity are now available. With affordability there has been a simultaneous growth for buying annuity. ?A year ago, I would have washed my mouth if I said the word annuities? said financial planner Harold Evensky of Coral Gables. ?Now I believe they can be an important part of retirement planning.?
Many investors believe the same thing about annuity today and that is why its sale is constantly on the rise in the financial market.
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