Using Annuities to Offset a Fixed Income Future

By Kyle Fitzsimmons, InsuranceAgents.com Staff Writer

Annuities Are Investments that Provide Future Funds

Purchased primarily through life insurance companies, annuities give those who invest in them the ability to secure funds for later in life when fixed income is no longer an option. Everyone must retire-some earlier than others-at one point or another in their lifetime. If you run into complications with your pension plan or simply do not have an option in terms of funding your retirement then an annuity might be up your alley.  Compare annuities fast, and free.  Find out how you can make a little, go a long way.

Annuities come in different forms. Each kind of annuity offers different advantages and disadvantages to its consumers. In general there are two basic types of annuities.

Types of Annuities

• Immediate annuities - Once your immediate annuity is issued you begin receiving income from it and can decide how long you wish to receive the benefits from your annuity.
• Deferred annuities - Primarily referred to as a tax deferred annuity, this type of annuity is geared toward retirement funds because it is a long term investment that allows you to pay into it over a course of however many years and then receive payment at a predetermined date

NOTE: Immediate and deferred annuities are available in fixed or variable form. Fixed is the most conservative and comes with little possibility for loss. Variable is a riskier venture that comes with a high ceiling for profit but also comes with the possibility of loss.

Plan for the Future with an Annuity

Annuities are not for everyone but are a popular investment for those who like to think of "the big picture" in terms of what the future holds. Talk to your life insurance agent today about whether or not purchasing an annuity is a wise idea for you and more specifically, which type of annuity best suits your purposes.

Published: Friday 20th November 2009