Annuities - Planned Future For Everyone

Annuities are types of repayment patterns imposed on your pension every time you make a withdrawal. The withdrawals reflect directly to the value of the investment you made to the annuity scheme. Annuity is a word derived from the English word annual. It therefore means that you collect the payments or the withdrawals annually.

The many characteristics and specifications of annuities make them easier to group and identify which one the best is. You have a wide variety to choose from depending on your living patterns, your source of income and by you own age and personal preference. The variations occur because of the money you invest, the mode of repayment, the repayment procedure, the type of investment and the terms governing your drawings.

There is a three-way mode of classifying annuities. The level criteria involves income based level annuity that states that you get a fixed value of the annuity for the rest of your life. The increasing annuity plan is whereby the value of your drawings increases by a certain percent annually. This is good for you since it counters inflation rising rates. The other type of annuity plan is the investment-linked pattern that involves involving your investment to fields like real estate, bonds and shares. The pattern is profitable if you invest in promising markets. You are at a better place since the more the assets or the shares gain the more the turnover of your annuity investment.

There are two categories of Annuities. These include immediate and deferred annuities. An immediate annuity involves a procedure where you start earning payments as soon as you make an investment. A deferred annuity is whereby you make an investment and wait for a given duration of time before you start receiving payments, probably after retirement. The deferred annuity is also flexible and you can start earning your payments by just changing your annuity type to an immediate annuity.

Apart from the two categories, other specifications make annuities variable. They include joint or single life annuities. You can choose to take a joint investment with your partner or an independent investment. The advantage of opening the joint annuity is that you may have a larger investment while the benefit of a single annuity is that you are the sole beneficiary of the investment. It is now upon you to decide which the best investment structure is. You can also take a joint annuity plan for you and your family.

The fixed term annuities pose to be the best mode of invest you need to plan for your future. This plan involves you taking an initiative of making a lifetime commitment. You get to an annuity company then settle for a package that matches your lifestyle and financial schemes. You can choose for a flexible payment period or a permanent investment rate. You can also take a specified period of the investment before you start making withdrawals. This mode of annuity is good for family you no matter your employment status. You will never miss an ideal package for you.

Check out for more information on Annuities.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.