Fixed Deferred Annuity Investments Monroe NC

A fixed deferred annuity is the insurance industry's version of a savings account. It helps you earn a modest rate of interest safely and allows you to postpone the payment of income taxes on your earnings for as long as you want.

Local Companies

Consolidated Pension & Employeebenefits Inc
(704) 846-6283
3133 High Ridge Rd
Charlotte, NC
American Municipal Securities Inc
(704) 940-8970
2700 Coltsgate Rd
Charlotte, NC
Amwins Brokerage of The Caroli
(704) 365-6101
120 Greenwich Rd
Charlotte, NC
Anchor Retirement Solutions
704-552-3689
6000 Fairview Road, Ste 1200
Charlotte, NC
Nationwide Insurance Companies
(704) 283-5823
300 E Phifer St
Monroe, NC
State Farm Insurance
(704) 283-7589
116 E Phifer St
Monroe, NC
Hancock O L Insurance
(704) 283-1893
1201 Concord Ave
Monroe, NC
Mutual of Omaha
(704) 283-1893
1201 Concord Ave
Monroe, NC
Contemporary Benefits Design Inc
(704) 296-0900
2258 W Roosevelt Blvd
Monroe, NC
Crowell John Insurance Agency
(704) 289-8404
2202 W Roosevelt Blvd Ste A
Monroe, NC

Annuities For Dummies

Adapted From: Annuities For Dummies

A fixed deferred annuity is the insurance industry's version of a savings account. It helps you earn a modest rate of interest safely and allows you to postpone the payment of income taxes on your earnings for as long as you want.

Fixed annuities sometimes offer higher interest rates than competing investments, such as CDs (certificates of deposit), because the insurance carrier puts your money in longer-term bonds, which typically offer better returns than short-term bonds. Whenever fixed annuities pay higher rates than other safe investments, they're worth considering.

Don't confuse these fixed annuities with immediate fixed annuities, where you pay a lump sum for a fixed monthly payment that can last the rest of your life, a specific number of years, or as long as you or your spouse is living.

Characteristics of fixed annuities include:

  • Guaranteed principal: You can't lose your money unless the insurance company fails, which is unlikely if it has a strong financial rating.
  • Guaranteed minimum interest rate: Your money never earns less than this rate, even if the insurance company reserves the right to reduce the rate it gave you in the first year.
  • Annual withdrawals: Most contracts let you withdraw up to 10 percent of the value of the annuity every year with no penalty. If you're younger than age 59-1/2, however, you may owe an IRS penalty.
  • Surrender period and surrender charges: This is the waiting period (one to ten years in most cases) during which you can't withdraw more than 10 percent of your money per year without a penalty or adjustment.
  • Death benefits: If you die while owning the annuity, your money (including the interest you've earned up to your death) goes to your beneficiaries. If you want, you can change the beneficiary after you buy the contract.
  • Income option: You can convert the value of the fixed annuity to a guaranteed income stream (regular payments to you) for a specific number of years or for as long as you (or you and your spouse) are living.
  • Premium requirements: The minimum initial investment for a fixed annuity ranges from $2,000 to $100,000. You can purchase a single-premium contract with one payment or a flexible-premium contract with ongoing payments. If you send in more than one premium, each premium may require the purchase of a separate contract.

Fixed annuities have their pitfalls. For example, you may find yourself trapped for years in an investment that pays you less and less interest every year if you get bad advice or don't read the fine print. But, when handled with care, fixed annuities can be valuable because:

  • Your money is safe.
  • You can delay paying taxes on the interest you earn.
  • You have virtually no upper limit on contributions.
  • They often offer higher interest rates than competing investments.
  • They can reduce the overall risk of your investment portfolio.

provided by:


For Dummies is a registered trademark of Wiley Publishing, Inc. in the United States and other countries. Used here by license.


Featured Local Company

Consolidated Pension & Employeebenefits Inc

(704) 846-6283
3133 High Ridge Rd
Charlotte, NC

Related Articles
- Annuity Monroe NC
Annuities are investment vehicles that usually provide tax advantages, some degree of investment security and some income for a period of time. The type of investment will determine whether it is a fixed or variable annuity.
- Reasons Why To Buy Annuities Monroe NC
- I Bond Investments Monroe NC
- Substantially Equal Payments Relief Monroe NC
- Equity Index Annuities Monroe NC
- How To Spot Fake High Yield Investments Monroe NC
- Stages of Annuity Investments Monroe NC
- Advanced Life Deferred Annuities Monroe NC
- Annuity Investments for Retirement Monroe NC
- How To Purchase An Annuity Monroe NC
Related Articles
- Annuity Monroe NC
Annuities are investment vehicles that usually provide tax advantages, some degree of investment security and some income for a period of time. The type of investment will determine whether it is a fixed or variable annuity.
- Reasons Why To Buy Annuities Monroe NC
- I Bond Investments Monroe NC
- Substantially Equal Payments Relief Monroe NC
- Equity Index Annuities Monroe NC
- How To Spot Fake High Yield Investments Monroe NC
- Stages of Annuity Investments Monroe NC
- Advanced Life Deferred Annuities Monroe NC
- Annuity Investments for Retirement Monroe NC
- How To Purchase An Annuity Monroe NC

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History