Before you decide to open an annuity account, it is important to understand why an annuity is helpful and how it can benefit you. There are a few things that you can do to help ensure that you are getting the best annuity rates and you are meeting your financial goals with an annuity. Before you can make this decision however, it is critical to compare annuities and compare annuity rates.
Compare Annuity Rates
Annuities may be fixed or variable. When you begin to compare annuities, this is the first set of terms you must understand. Fixed annuities guarantee a set amount is paid monthly, while a variable annuity payment differ depending on the performance of the underlying assets. In addition, when you begin to compare annuities, you must also determine whether to invest in a deferred annuity or an immediate annuity.
What is a deferred annuity?
An investor who uses an annuity may elect to defer payments. Typically, this is done until the annuitant retires. Once the annuitant decides to begin accepting payments, the amount and the length of payments will continue according to the terms of the contract. You must compare annuities carefully before you determine if they are the right investment for your needs. An annuity that is deferred may offer higher rates since the annuitant is accepting more risk.
What is an immediate annuity?
An immediate annuity works similarly to a life insurance policy, except that instead of paying regular premiums, investors deposit a block of funds with an insurance company. In return for this infusion of cash, the insurer begins making payments to the annuitant immediately. The term of the annuity contract is set as 10-year, 20-year or lifetime contract. This will determine how long the annuitant receives payments. When comparing annutieis, make sure you find out how long the overall contract is as well as any guarantees.
How to compare annuities in St. Petersburg
Annuities are not the right investment for everyone. Whether you are entering the workforce for the first time or approaching retirement, you will need to understand how to compare annuity rates in St. Petersburg.
- Annuity Term. Terms can range from 10 years to lifetime annuities. This is an important feature that must be considered when you compare annuiy rates.
- Annuity Payments. Fixed payments are often more costly than variable payments. The first step to compare annuities in Florida is to review whether the payments are fixed or variable.
- Annuity Guarantee. Many annuities will offer a growth guarantee for a set period of time. The guaranteed growth must be considered part of the overall picture when you compare annuities in St. Petersburg.
Annuity investments can be beneficial when planning for retirement. However, a thorough understanding of the types of annuities, term of the annuity and the overall guarantee is cruicial to determining which annuity is the right investment. There are tax benefits that must also be taken into consideration.
Keep in mind that as you get closer to retirement, you must take the steps needed to ensure your financial health is stable. Only when you take every variable into consideration can you determine which type of annuity is right for you. Growth, safety and payment schedules are all important factors to consider when you compare annuity rates in Florida.
Advanced Capital Management, Inc. can show you how to get better returns on your retirement dollars and provide you with the income you need. Why not find out more about how a lifetime income annuity rider works? It costs you nothing to find out if a Fixed Index Annuity or Life Insurance is the right option for you. Just click on the orange “Get Annuity Quote” button to the right and see how you can generate more income, safely, for your retirement.