Fixed annuity is your Key to Financial Security

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<h1>Fixed annuity is your Key to Financial Security</h1><strong> Author: <a href='http://www.articleseen.com/profile_Robert Maddy Cooks.aspx'>Robert Maddy Cooks</a></strong><br /><p>Are you worried about your future, especially post retirement? Do you often hesitate going for an investment? Well, if a ‘yes’ stands as an answer to these questions then, deter not , as there are investment plans designed to cater to your needs as well. A fixed annuity comes across, as the smartest option for people avoiding a risky deposit and for those unsure about the future. Usually, fixed annuities are nothing, but an investment option designed by insurance companies offering a stream of payments to the annuitant for a specific period depending on the investment value over the plan. This particular annuity investment option is also referred to as ‘tax-deferred annuity’ plans, as it defers your tax over the earning until a withdrawal or until the time you start receiving an income from it. This investment plan helps you pull up on your finances for sustaining through the post retirement age. A fixed annuity offers competitive return, which usually tend to be safe. Since, these are tax-deferred; you get to earn an additional interest that is compounding on the money that you are usually supposed to pay as taxes. Well, this particular investment policy come with multiple advantages, here is a look at some – Tax-deferred accumulation of interest - Interest earned via fixed annuities do not fall under the purview of present taxation until it is withdrawn; this ensures an accumulation of increasing cash amount. Competitive interest rate – The interest rates that are usually fixed upon the annuities tend to be competitive with other fixed –interest investment plans and certainly are much better than Bank CD investments. Guaranteed returns/Safety – The assets of the insurance company safely guard the value of your fixed annuity investment. Additionally, the Insurance Guarantee Fund covers all the annuities, which are known to offer a minimal guarantee on interest rate. Now, the fixed annuity investment plan is not restricted to one certain plan. A number of plans and schemes are designed to cater to the interest of the consumers. The CD- Annuities is a particular type that guarantees an interest rate for up to 10 years. In the traditional plans, the interest rate is “reset” each year on the initial deposit day. Fixed annuities never offer a rate that is lower than the minimum interest rate guarantee of the company. To ensure a fair investment, always make sure to avoid annuities that are charging front-end contract fees and sales loads.</p><strong>About the Author:</strong><br />Robert Cook is a business consultant who has good information on <a rel="nofollow" href="http://www.immediateannuities.com/">fixed annuity</a>. For more information on <a rel="nofollow" href="http://www.immediateannuities.com/">fixed annuities</a> he recommend you to visit <a rel="nofollow" href="http://www.immediateannuities.com/">www.immediateannuities.com/</a>.<p> Article Source: <a href='http://www.articleseen.com/Article_Fixed-annuity-is-your-Key-to-Financial-Security_128449.aspx'> http://www.articleseen.com/Article_Fixed annuity is your Key to Financial Security_128449.aspx</a></p>

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Category : Finance : Investing