Different Options When it Comes to Income From Annuities

It is necessary to live life in the moment and not worry too much about the future. However, at the same time, it is necessary to be prudent at times and save something for future needs. There are many financial products available today when it comes to making a profitable investment.

One such product is annuity. Insurance companies offer to pay you small amount of money at regular intervals for your investment made in the company. One can earn a handsome amount of income from annuities. In fact, annuities are the best retirement solution available today.

There are various options available when it comes to earning an income from annuities. The different kinds of annuities available right now are:

Fixed Annuity - One of the most secure methods of ensuring a steady income from annuities is fixed annuity. A fixed annuity involves the fixture of the interest rate by the insurance company at the time of buying the annuity. The insurance company can also revise the rates at the start date of the annuity each year but again, the interest rate decided remains the same throughout the year. This kind of annuity is a conservative investment option and one that ensures a particular assured sum to the investor.
Index Annuity - Another option when it comes to making an income from annuities is an index annuity. An index annuity is linked to an equity index whose value keeps changing from day to day depending on the market conditions. Here, the interest rate is not determined by the insurance company but is rather decided by the value of the equity index the annuity is linked to.

The fixed annuities and index annuities can further be divided into immediate annuities and deferred annuities.



Immediate Annuity - if you are looking for income from annuities, immediate annuity is meant for you. An immediate annuity starts giving you returns immediately on investment. You do not have to wait for a certain length of time and can withdraw your money as and when you like. Unlike deferred annuity, an immediate annuity is also not tax deferred and thus the returns on the investment are lower as compared to deferred annuity.

Deferred Annuity - Deferred annuities are meant for those looking for income from annuities in their retirement and have a considerable length of time to go for that. In a deferred annuity, you need to invest money regularly and you cannot withdraw the money until the lock in period is over. But the advantage with deferred annuity is that there are no tax deductions on the investment until you start making the withdrawals. Thus, your investment can grow manifold as compared to immediate annuity.

Annuities are a great way to ensure a steady flow of income even when the going gets tough. They act as a shield against the uncertain economic times and the constant fear of the markets crashing. And without tension, we can all live a happy and peaceful life which is very important to ensure a good quality of life.

Visit http://www.annuitycampus.com for more Annuity and Life Insurance Tips and Tricks.

Call Robert Eldridge directly at 800-643-7544.

Robert Eldridge holds over a decade of experience as a multiline agent in multiple states and currently serves on the membership council of the National Association of Insurance and Financial Advisors

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