123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

What Is An Annuity? - Annuities Explained

Profile Picture
By Author: Robert Deans
Total Articles: 246
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Simplified, an annuity is a regular income paid in exchange for a lump sum payment. Annuities offer you (and your partner) a sense of security for you retired life. Annuities must not be taken lightly though plus its always recommended that you take the advice of a professional before decide to take up any annuities.

How can you gain from an annuity?

It can give you (plus your partner or spouse) security to allow you to live the retirement you always dreamed of

The level of any annuities you take can be chosen by yourself (monthly, quarterly)

You spouse might receive benefits

What are the different types of annuities?

The main three catergories of annuity are:

Fixed Annuities

Variable Annuities

Indexed Annuities

Fixed Annuities

This option carries minimal risk and may provide a specific return for a fixed time period. These fixed rate annuities are perfect for older people that want a simple way to acquire a set amount of cash in retirement.

Variable ...
... Annuities

With this option your moneys can be divided and invested in different areas. The payment you will receive with this type of annuity depends entirely on how the underlying investments have performed. Whilst the risk value is higher with these types of annuities it also is the reason why the returns may be greater. When selecting a variable annuity you need to be prepared to take a little risk!

Indexed Annuities

Indexed annuities have a rate tied to a financial market index.

The different kinds of annuities often mean that it may be hard for individuals to decide if:

They really want an annuity

Which of the annuities available is best suited for their requirements

It is always advisable to obtain some expert advice from a financial advisor who should be able to guide you towards the annuity that is best suited for you (often according to your age, lifestyle, personality, finances etc.). You have to be satisfied that you have carefully considered all of the advantages and disadvantages so any annuity you choose is the one that meets your needs. Once you've bought an annuity there's no going back.

For this reason it is crucial that you choose your annuities carefully, if you do, there's no reason why you cannot fully enjoy your retirement without the money worries.

This article was written by R Deans on behalf of Robert Bruce Associates, leading independent financial advisors, and experts in annuities. For more pension advice, please visit rbaifa.co.uk

Total Views: 286Word Count: 396See All articles From Author

Add Comment

Business Articles

1. Finding A Trusted Sustainability Consultant In Abu Dhabi
Author: Agile Advisors

2. Iso Certification In Dubai – Advantages For Business
Author: Agile Advisors

3. Best Forex Brokers List | Best Broker For Forex Trading 2024
Author: Top Forex Brokers Review

4. Celebrate Achievements With Customized, High-quality Awards From Trophy Deals
Author: Trophy Deals

5. Is 100% Company Ownership Possible For Expats In Saudi Arabia?
Author: jodonjo

6. We Are Hiring: Senior Executive - Indirect Taxation In Gurgaon!
Author: tanvir Khan

7. Ceratec Tower 1o8: The Eventual Fate Of Business Greatness In Balewadi, Pune
Author: Tarun

8. Enrofloxacin Manufacturer: Swisschemie
Author: Swisschemie

9. Ultimate Guide To Hotels In Mussoorie: Discover The Best Places To Stay, Including Hr Hotels And Resorts
Author: Hr Hotels and Resort

10. How Quickly Do Fast Cash Loans Online Pay Out Cash On The Same Day?
Author: Lucy Lloyd

11. Leading Digital Marketing Agency In Hyderabad And Unlock Your Brand’s Potential With Sanbrains Agency
Author: Sanbrains Seo

12. Celebrate Success With Customized Awards From Trophy Deals
Author: Trophy Deals

13. Title: Choosing The Right Humidity Stability Chamber Supplier For Your Manufacturing Needs
Author: bio gene

14. Complete Guide To Studying Mbbs In Poland
Author: Mbbs Blog

15. What Is The Process For Locating The Best Lender For Short Term Loans Online?
Author: Robert Miller

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: