Annuities – Are They Worth It?

Variable annuities are risky – is this true?

If you have more funds to invest, you may want to try the variable annuities. This is one of the most interesting retirement plans because you can invest as much as you want. Many people are not aware of this and so they are not inclined to invest in variable annuities because they fear losing their initial capital.

There are many benefits to obtain from variable annuities, one of them being guaranteed payment to your beneficiaries in the event of your death. [pullquote]There are many benefits to obtain from variable annuities, one of them being guaranteed payment to your beneficiaries in the event of your death. [/pullquote] The minimum payment would be equivalent to the sum of your initial capital. Your beneficiaries may also receive earnings from interest rates calculated annually. If the present amount of your investment exceeds the amount of initial capital plus earnings from interest rates, then your beneficiaries may receive full payment based on the new amount.

Get stable rates with fixed annuity

If your main goal is to invest and earn a fixed amount of monthly income, then you should look nowhere else but at the fixed annuity. The fixed annuity is known for its ability to pay a steady return to investors. It seems that the returns are lower than a lot of other annuities; however, if you want to play it safe, this is the option you should go for. One thing for sure is that you may enjoy stable rates until the end of your contract. This means you can accurately estimate or even know for sure how much you are earning every year. There is a huge possibility for you to double your earnings if you choose to keep your funds untouched.

You are making a smart move if you choose to invest in any annuity programs. These programs are among the most significant tools that anyone can use to fund their retirement. One of the greatest benefits you may enjoy is a guaranteed stream of income for life. Investing in an annuity program is also one of the smartest ways to save and grow your funds. If you love your money, you’ll love investing in annuities.

Max Oser is a professional finance & economics articles writer and annuity advisor that help people in finding and comparing best annuity rates for their needs.