Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Are Annuities the Answer for your Future?

By Robert Jhonson Subscribe to RSS | March 12th 2012 | Views:

With retirement drawing close, are you satisfied with the build-up of 401 (K)? Well, if yes then, the obvious question that tends to pop is – how can you be sure that the income that is due to be generated will be sufficient to sustain you through the retirement years. Retirement income, for years has been like the redeeming feature for experts in the field worrying about longevity. The solution that tends to come up is the income annuity.

This particular annuity scheme suggests a simple idea – invest a specific amount of cash in an insurance company to receive a monthly check throughout the period you live. This income generating plans scheme has come into focus recently with U.S. Treasury Department proposing policies that would make the use of income annuities within Individual Retirement Accounts (IRAs) or 401(k) retirement schemes easier.

According to LIMRA (an insurance industry research and consulting group), the sale of income annuity witnessed a rise of 6.6 per cent in 2011 claiming a record $8.1 billion. Investors or retirees are usually drawn to the higher return rates that an income annuity provides, when compared to other traditional investments like, bank CD’s or bonds. For instance, a man of 65 years who had purchased an immediate annuity of $100,000 is likely to receive an approximate amount of $560 every month throughout his life. The state insurance boards control income annuities like any other insurance product.

Alternatively, you being close to retirement can also rely upon the scheme of life annuity in deciding a settlement with your pension. The proposition of this particular annuity scheme is simple – you are due to receive a periodic payment until your death that is predetermined on the amount that you have purchased. Well, investing on the best plan can influence your retirement income greatly, proposing either an increase by 20 per cent in the income or a decrease of the same amount.

Most people on the verge of retirement choose to turn their pension into a guaranteed income to sustain their living during the period. However, prior to making your choice with the life annuity plan, you need to make sure that you research well on the subject, as getting the best returns is dependent on multiple factors like, age, lifestyle, health, and actual needs of retirement. For example, obtaining an impaired–life annuity guarantees a better return rate, provided you have an underlying medical condition.

Additionally, you also need to decide upon the choice of taking a joint life annuity that guarantees a continued payment of 67 per cent (approx) of the actual payment to the survivor, in the event of the death of one annuitant.

Robert Jhonson - About Author:
Robert Jhonson is a Financial consultant who has good information on life annuity and income annuity. For more information, he recommends you to visit

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Investing Articles Subscribe to RSS

Text Loans Bad Credit- reasonable schemes in order to avail a healthy life
Published by Calvien Peter on December 2nd 2011 | Finance
Text Loans Bad Credit is resources designed for folks who want to live a debt free life on getting t...
Plan for a peaceful retired life with retirement annuity
Published by Robertcook on April 6th 2012 | Investing
If you wish to have a peaceful and tension free retired life, start to plan early while you are stil...
Christian Debt Help – Live Debt free life, always
Published by Julia Roger on January 28th 2012 | Finance
Christian Credit Counselors are always there for your help when you are facing financial crisis. The...
Proper information about annuity quotes and annuity calculator
Published by Robert Jhonson on March 27th 2012 | Finance
Information about the various annuity quotes and the usage of the annuity calculator can help you ta...
Why is it best to opt for fixed annuity and the deferred annuity
Published by Robert Jhonson on March 20th 2012 | Finance
The annuity is the best investment that you can possibly make while you are still employed....
Live a stress free life with the fixed and the income annuities
Published by Robertcook on March 7th 2012 | Investing
If you are looking for a steady income after retirement, then start making investments in the income...
What is the right age for investing in an annuity?
Published by Robertcook on March 1st 2012 | Investing
When you plan to invest in an annuity scheme, age is one of the most important considerable factors....
Have a safe and secured financial life
Published by Pramod Kumar Singh on May 23rd 2012 | Finance
Know about the different financial investment options and invest in various financial products to ha...
Get assured income with the income annuity
Published by Robert Jhonson on March 27th 2012 | Finance
The income annuity is considered to be a great investment while you are employed. It provides you wi...
Homeowner Loans: a shelter throughout your life
Published by Addy Roy on June 7th 2012 | Finance
Homeowner loans are easy to avail with larger loan amounts, longer repayment tenure and lesser rate ...