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Annuities For Retirement

Do you Want Annuities For Retirement?

There are three basic kinds of annuities.

I recommend that you first read about them on the "What is an annuity" page.

The idea is to protect your nest egg and generate an annuity income during you retirement years.

Payouts and prices fluctuate.

Annuity value

Can be thought of as what it is worth in total for the life of the annuity.

Annuity value is considered to be the value of the payments that would be made into the future discounted to the equivalent value today.

Annuities usually have tax-deferred growth of earnings. Some include a death benefit to your beneficiary.

As the time comes to make withdrawals from your annuity, you are not taxed as if it were capital gains, you will be taxed on the gains at the regular income tax rate.

You will want to check with any company that you previously wanted to go with. Be sure that the deal is still the same when you decide to sign on.

Variations In Annuity Payments

At age 65 depending on the company you are going to contract with if you put in $150,000 into an annuity that starts to pay right away, over the period of the next 20 years you could have a difference in payouts to you of as much as $100,000.00.

Annuities For Retirement From Different Companies

Some companies selling annuities aren't very strong, and will offer better interest rates etc., out of desperation to get more money in their till. Other strong companies know their strength and negotiate from that position and are offering a more secure but lower rate.

You may want to consider that the less the company will take on risk, the more secure your money will be.

It isn't just the interest rates that are part of the package there are numerous fees and caps, penalties, limits, etc. to be very careful to understand.

You might want to consider a 401 K retirement plan.

Disclaimer

Disclaimer: Before you make an investment get legal or professional advice.