Why Do Annuities Matter?
With all of the current news about market accounts dropping, and the dismal interest rates paid by bank CDs or savings accounts, people are looking for an alternative in order to save for retirement. An alternative would be save, guarantee some rate of return (or at least, that value will not be lost), and it would return better interest rates than most banks do. That is where annuities may help. You can also get more info here: explain annuities.
How Do Annuities Work For Retirement Savers?
Note: For this discussion, we are talking about fixed annuities, or those sold by insurance companies and agents. Variable annuities are riskier, and while they may promise greater returns, they are outside the scope of this article, and my expertise!
Who Are They Good For?
Annuities are good for savers with a medium to long term savings goal in mind, and for those who can commit to that goal. They are also used to provide a guaranteed payout over some span of time. This time period could be from several years to lifetime payouts.
Types of Fixed Annuities
An immediate annuity accepts a lump sump cash contribution, and then [...]
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