How To Purchase An Annuity Arcadia FL

There are basically two types of annuities. A fixed annuity earns a guaranteed interest rate over a specific period of time, while a variable annuity offers a much greater range of investment funding options than fixed annuities.

Local Companies

Ameriprise
(863) 993-0700
819 N Mills Ave
Arcadia, FL
Symetra Investment Services
(863) 494-6495
128 W Oak St
Arcadia, FL
Money Consultants Inc
(863) 993-1776
Arcadia, FL
Arbor Asset Management
(813) 661-6077
1206 Millennium Pkwy
Brandon, FL
Adams Leslie Artsis
(561) 471-5500
1700 Palm Beach Lakes Blv
West Palm Beach, FL
Cambridge Financial Services of South Florida
(561) 686-2252
380 Columbia Dr
West Palm Beach, FL
Petros Financial Services Inc
(904) 824-5656
100 Southpark Blvd Ste 307
Saint Augustine, FL
Pinnacle Towers Acquisitions Llc
(352) 498-9426
Cross City, FL
Resource Consulting Group Inc
(407) 422-0252
301 E Pine St Ste 300
Orlando, FL
Driscoll Kevin Cfp
(904) 620-9906
8825 Perimeter Park Blvd
Jacksonville, FL

There are basically two types of annuities.

Fixed Annuities

A fixed annuity earns a guaranteed interest rate over a specific period of time. When this period of time expires a new interest rate is set for the next period of time. Is important to note that a fixed annuity is not backed by the Federal Deposit Insurance Corporation (FDIC).

Variable Annuities

Variable annuities offer a much greater range of investment funding options than fixed annuities. Because their performance depends on the investment options your principal and return are not guaranteed. Some variable annuities offer a fixed accounts alternative that guarantees principal and interest a lot like fixed annuities. You can then divide your funds between the low-risk option as well as high-risk options such as stocks.

Purchasing Annuities

There are two ways to purchase annuities. You can either pay the premium using one lump sum or you can make ongoing contributions to what is called a flexible payment annuity. With a flexible payment annuity you can contribute money pretty much any time you want. Another benefit of variable annuities is that they allow you to transfer money from one account to the other without having to pay taxes on any earnings you make as a result of the transfer. The disadvantage of variable annuities is that you will most likely pay higher fees than you would with a fixed annuity.

If you are wanting to save money for retirement a fixed tax deferred annuity may be the best option for you. With a tax-deferred annuity you don't pay taxes until you make a withdrawal or begin receiving annuity income. This can allow you to accumulate a greater amount of money over an extended period of time. You should think carefully though before putting money into a tax-deferred annuity. If the money is needed before age 59 and you withdrawal the money the IRS may apply heavy penalties. In addition the insurer may also impose its own withdrawal penalties which are often cause surrender fees.

You can also purchase what is called an immediate annuity. When you purchase an immediate annuity you make a one-time payment and distributions usually begin within 30 days. Immediate annuities can be fixed or variable. Because an immediate annuity can provide stable income payments guaranteed for a selected period of time, this is a good option if you need a financial vehicle that can provide guaranteed income for life.

Before purchasing an annuity is important to speak with a professional financial adviser so you have an understanding of the various tax consequences of an annuity as well as the expenses which may be associated with the contract.

About the Author:

Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.


Article Source:

thePhantomWriters Article Submission Service

Featured Local Company

RJC Tax Advisory Group

941-929-7999
6151 Lake Osprey Dr. Ste. 312
Sarasota, AK

Related Articles
- Substantially Equal Payments Relief Arcadia FL
If you initiated early distributions from your Individual Retirement Account (IRA) in the last couple of years using a Substantially Equal Payment plan, your annual distribution amount may be more than your current account balance can bear.
- How Structured Settlements Work Arcadia FL
- Steps Before Making A Major Purchase Arcadia FL
- Advanced Life Deferred Annuities Arcadia FL
- Annuity Investments for Retirement Arcadia FL
- Fixed Deferred Annuity Investments Arcadia FL
- Annuity Arcadia FL
- Stages of Annuity Investments Arcadia FL
- Reasons Why To Buy Annuities Arcadia FL
- Equity Index Annuities Arcadia FL
Related Articles
- Substantially Equal Payments Relief Arcadia FL
If you initiated early distributions from your Individual Retirement Account (IRA) in the last couple of years using a Substantially Equal Payment plan, your annual distribution amount may be more than your current account balance can bear.
- How Structured Settlements Work Arcadia FL
- Steps Before Making A Major Purchase Arcadia FL
- Advanced Life Deferred Annuities Arcadia FL
- Annuity Investments for Retirement Arcadia FL
- Fixed Deferred Annuity Investments Arcadia FL
- Annuity Arcadia FL
- Stages of Annuity Investments Arcadia FL
- Reasons Why To Buy Annuities Arcadia FL
- Equity Index Annuities Arcadia FL

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