About Variable Annuities
Investors have a mixed bag of shipway to save for the later. Whether it's funding retirement or saving for grand purchases in the long-term, choosing an investment depends along the length of the investment, budget and expectations of operation versus the risk involved. Inconsistent annuities hindquarters be a good mode to addendum other retirement plans and warrantee an income stream in retirement.
A variable annuity is a contract between the purchaser and an insurance company. In return for premium payments, the issuer agrees to make stock payments to the purchaser. Payments can Begin immediately or at a future date.
– Often like a fixed rente, contributions are made with after-tax dollars and are not tax-deductible. Most investors should investment firm other retirement plans first, but if you've already contributed the utmost allowable add up to those plans and want to save more, an annuity can follow a good choice.
– The difference with a variable rente is that the purchaser lavatory designate how the premium dollars will be allocated among the investing choices (often called subaccounts.) Multivariate annuities don't offer any guarantees on the performance of subaccounts. While at that place is a greater voltage for earnings growth, there is also greater risk. If subaccounts perform poorly, you May lose money, including important. Look at a variable annuity only if you're willing to assume the risk inherent in investment.
– There are two phases of rente: accumulation and distribution. During the accumulation phase you lavatory pay premiums in one lump pith or a series of payments over time. During the distribution phase the investor can withdraw some or all of the money in a lump sum or can annuitize. Annuitization provides a guaranteed income well out for either a specified period or for life.
– Annuities are designed for long-term investment. Usually there is a penalty for too soon withdrawal, so be foreordained you won't need the investing until age 59 1/2.
With offices in New York State and Savannah, Barbara Treadwell has more than 20 years of have in the financial arena. A Documented Financial Deviser, Treadwell embraces the LEAP Systems principals of coordinating and integrating assets for improved rates of return, tax savings and amend protection against the eroders of riches.
For more information, squall United States of America at (800) 695-6007.
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