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Home » Advantages of Annuities » Why Invest in Annuities?
Why Invest in Annuities?

Different People

Different Financial Needs

One Solution

Invest in Annuities


“Why invest in annuities?” this question can easily be replaced with another, “why invest in your future?” Because, simply put, annuities offer individuals a chance to secure their financial future and also provide tax benefits. Annuities are contracts offered by insurance companies that promise a certain rate of interest on the premium paid by the investor. Annuities have been around for a very long time. In fact they were offered in the Roman Empire where citizens could make a one-time payment and were promised a lifetime annual stipend. Financial stability is a key factor in the quality of life that one leads. It is important that working professionals invest in annuities today, in order to reap the benefits in their retirement years. With increase in life expectancy it is crucial that a person’s savings last him or her for as long as they are alive. Furthermore in order to continue with a similar lifestyle as one has prior to retirement it is important to invest in a manner that the money grows well. Investing in annuities is a wise decision if:

  • You wish to be secure in the knowledge that your retirement years are taken care of.
  • You worry that your savings may not last as long as you will.
  • You are looking for a better rate of interest than offered by traditional investments such as CDs.
  • You want a financial product that offers flexibility and versatility.
  • You are searching for an investment options with tax benefits.

The fact that there are many types of annuities in the market to choose from makes investment in annuities an ideal choice. So whatever your financial situation and requirements, there is an annuity that is perfect for you to invest in. If you want to put away money for your retirement years and wish to see it grow well, then deferred annuities are a good option. For those who are looking for a regular source of income for the rest of their life, a lifetime annuity is worth considering. If you are about to retire and have a large sum of money to invest you can buy an immediate annuity that will almost automatically begin income payments. For those who also wish to gain from the superior performance of the stock market and yet be assured a basic interest rate consider investing in equity-indexed fixed annuities.

Annuities are tax-deferred. This essentially means that the investment is not taxed until you are ready to receive income from the annuity or withdraw from it. There are no IRS-imposed annual contribution limits. Furthermore there is no age limit for investment in annuities and at any age one can create a retirement plan for oneself by investing in annuities. It is a good idea to consult with an annuity broker when investing in annuities so you have the right and current information to make investments suitable to your financial situation.


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