What are the different kinds of annuities that are available in the market?
Do you know everything about the various annuities? Annuity is a kind of investment plan that is made especially for the retired persons. It is also a great plan if you are looking for a good alternative to the fixed deposit or stock market investments or any other alternate source of income. There are several different annuities and the interest rates of each of the annuity schemes vary as per the investment plan.
A professional annuity advisor will always answer all your concerns regarding the various kinds of annuities, their rates, the annuity quotes and also all other concerns regarding all the different kind of annuities. To invest in the annuities, you need to arrange and pay a lump sum amount to the investment company. You can also opt for making regular monthly payments to them. Once you know all these facts, it will help you to make a decision regarding the kind of annuity that you can put your money on.
There are professional advisors who would be able to assess your options about the kind of investment plans that you can opt for. They usually base their analysis on the amount that you plan to put up for investment along with the information about the objectives that you have about the purpose of this investment. To know whether the investment on the annuities would be ideal for you depends on the annuity quotes. There are several annuity rates and types of annuities. So it is wise that you should ask about the annuity quotes from your annuity advisors. Once you know about the various annuity quotes, you will have an understanding about the best financial move that you can opt for your investment.
There are three types of annuities that are available for the investors. There are the fixed or the variable annuities. These are the ones that declare the rate of interest once a year and of course guarantee a minimum rate of interest. The fixed annuities uses up the securities and bonds that acts as their internal vehicle. The variable annuities do not include any of the minimum rates of interest as a guarantee. These are instead managed more like the mutual funds as they pass on their expenses and earnings to your pocket. Thus, it is imperative to say that the returns on such investments are much higher than that of the fixed annuity as the risk too is greater here.
The immediate annuity is the one that takes only one lump sum amount as the premium. This premium converts into a lifelong payment based on the chosen annuity rates. A deferred annuity on the other hand receives the payment during the accumulation phase of the annuity. The payments are issued after the deferred annuity matures. The deferred annuities are also taxable after those reach the maturity amount.
There is also the registered tax or the unregistered tax annuity. This is the most popular type of annuity amongst the people as they offer higher rates of interest.
Mike Anderson is a business consultant who has good information on annuity quotes and deferred annuities. For more information visit http://www.totalreturnannuities.com/