Wednesday, March 18, 2009
Annuities Fixed and Variable
An insurance contract in which the insurance company makes fixed payments to the annuitant for the term of the agreed upon contract, usually until the annuitant dies or otherwise cancels the contract. The insurance company (annuity) guarantees both earnings and principal. These are very common, and generally seem safer to most people, though most investors and registered investment advisors would be wise to research these, as they often are embedded with hidden fees and expenses.
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Annuities are certainly the way to go if you have $$ to invest. Currently, less riskier than the plagued stock market, it is a true retirement vehicle. Many people do not understand annuities or that there are different types of annuities, but a call to a licensed advisor should point out, that annuities might not be for everyone, but they just might assist you in achieving your investment goals.
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