Fixed Annuities Can Make Money Over Time
Most people have learned to be flexible in this economy, letting go of luxuries and sticking to the essentials to save money in the short term. A new article on InsuranceAgents.com, “Fixed Annuities Are the New Savings Accounts,” illustrates another lucrative way to save money: fixed annuities.
A fixed annuity is a contract with your insurance company—you hand over a certain amount of money to an insurance agent, who then invests it for you. Your fixed annuities are guaranteed to grow, gaining more and more interest as time goes by, until the pay out day.
Fixed annuities may appeal more to the conservative investor, the one who thinks long term; fixed annuities are ideal for funding any retirement plans of yours. Using fixed annuities to build money is a beneficial, valuable method in today’s economic climate.
“Fixed annuities really are essentially the savings accounts of the insurance industry,” the InsuranceAgents.com article states. “Fixed annuities are a good way to make money doing, essentially, nothing—much like a savings account. You invest your money in fixed annuities, let it sit and gain interest.”
The article details five main types of fixed annuities. Each person’s financial situation and lifestyle are different, so consult your insurance agent or accountant to decide which fixed annuity is best for you.
The five main types—each with its own characteristics—are: single-year guarantee fixed annuities; multi-year guarantee fixed annuities; market value-adjusted fixed annuities; “floating rate” fixed annuities; and “pass-through rate” fixed annuities.
As long as you don’t withdraw any money from the annuities, you don’t have to pay any taxes on it while it builds. You will, however, be taxed on it once the payout begins and you begin receiving the money like ordinary income.
Consult your insurance agent and tax profession if you are considering an annuity. Find the best method of investing in annuity that fits your budget and lifestyle. Also, get quotes to find affordable annuity rates. Check with InsuranceAgents.com for more information and take five minutes to fill out a quote form to find low annuity rates today.
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