The Role of Annuity Tables in Investments and the Types of Tables

The need to invest for future purposes arises out of the uncertainties of life. We never know how long we are going to live or how long our income stream is going to last. This aspect of life is utilised by financial institutions like banks and insurance companies. They offer a wide variety of financial products that give us the option of investing our money for future needs.

One such lucrative financial product in the market today is annuity. An annuity involves the payment of a certain amount of money at regular intervals of time and the payment of interest on that investment by the insurance company at regular intervals of time. One can also opt to take a lump sum amount but usually, taking the lump sum amount is a loss making venture as compared to interest payments. Nevertheless, an annuity is a perfect retirement solution for most people.

However, everybody is not familiarised with the financial products and what returns are expected on a particular type of annuity and this is where annuity tables come in to the picture.

Annuity tables give you a clear picture of what to expect from different types of investment. These tables thus ensure that you select an investment option that is most profitable to you.

Annuity tables are a tabular form or a graphical representation of the expected returns on a particular type of annuity. When these tables are used in conjunction with the market trends, one can form an accurate picture of the expected returns on an investment.

After one gets a clear picture, one can decide whether to go for a long term investment or a short term one. The annuity tables take into consideration various factors before coming out with the outcome on a particular investment. The factors include age, the principal amount, the financial institution etc.

Broadly speaking, there are two kinds of annuity tables- immediate annuity table and deferred annuity table. An immediate annuity table gives the expected income from the investment at different ages of stages of life.

A deferred annuity table gives an approximate idea of return from the investment after a certain length of time because deferred annuity involves a lock in period. But while consulting a table, one must keep a few caveats in mind.

One of the most important things to keep in mind is to make sure that the annuity table is up to date. The interest rates displayed in a table must be current. In case of outdated rates, the table would not be able to give you an accurate idea of your returns which can spell disaster for your investments.

Another thing to keep in mind while consulting these tables is that they come from a trustworthy source. Most of the online sites do not have proper annuity tables and most of them display outdated tables which do not give a clear picture for your investments.

Always make sure that you consult a trustworthy and a reliable source when it comes to deciding on your investments.

Click on the link below to learn more about Annuities.

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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