When referring to annuity, it's important to know that it was derived from the Latin word "annus" that can be said to be akin to Certificate of Deposits that banks offer. In straight-forward language, annuity is the same as income.
For a deeper definition, annuity is that habitual income stream that is paid to a person (or persons) from a lump sum venture, more often than not for the purposes of retirement proceeds. Lots of people don't want to retire and not have money coming in, that's the major reason why they buy annuities.
It's important to distinguish between annuity and life insurance or health insurance because they are different things. In the same vain, annuities are completely dissimilar to savings accounts or savings certificate.
If you want instant gratification, then don't buy annuities because they are for long term purposes. If you look at it positively however, annuities can go a very long way in helping anyone to build wealth that can be enjoyed in the future.
Most people are familiar with the fixed annuities and the variable annuities. Of course the term "fixed" annuity doesn't refer to "fixed interest"; it only means that the premium earns an interest rate that can be guaranteed.
Variable annuity, on the other hand, is that type of annuity that the interest rates go up and down. Those that are willing to take risks with their money go for variable annuity where their premium goes up and goes down. Don't commit to buying annuities until you have researched all about it and are convinced it's right for you.
Conclusively, talk to others that have bought annuities to know what to do and what not to door better to an insurance agent that you can trust before you commit your funds to an annuity.
For a deeper definition, annuity is that habitual income stream that is paid to a person (or persons) from a lump sum venture, more often than not for the purposes of retirement proceeds. Lots of people don't want to retire and not have money coming in, that's the major reason why they buy annuities.
It's important to distinguish between annuity and life insurance or health insurance because they are different things. In the same vain, annuities are completely dissimilar to savings accounts or savings certificate.
If you want instant gratification, then don't buy annuities because they are for long term purposes. If you look at it positively however, annuities can go a very long way in helping anyone to build wealth that can be enjoyed in the future.
Most people are familiar with the fixed annuities and the variable annuities. Of course the term "fixed" annuity doesn't refer to "fixed interest"; it only means that the premium earns an interest rate that can be guaranteed.
Variable annuity, on the other hand, is that type of annuity that the interest rates go up and down. Those that are willing to take risks with their money go for variable annuity where their premium goes up and goes down. Don't commit to buying annuities until you have researched all about it and are convinced it's right for you.
Conclusively, talk to others that have bought annuities to know what to do and what not to door better to an insurance agent that you can trust before you commit your funds to an annuity.
About the Author:
The author writes for www.DailyBulb.com. Steven Olson also writes for Tatathemes.com
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