Do you know about - Learn About Annuities and its Benefits - Personal Finance
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Learn About Annuities and its Benefits - Personal Finance Video Clips. Duration : 4.83 Mins.We had a good read. For the benefit of yourself. Be sure to read to the end. I want you to get good knowledge from Personal Finance Company . Personal Finance: What is an Annuity? - as part of the expert series by GeoBeats. A lot of people have heard about annuities and they are not really sure about them. Plus, there is a lot of controversy associated with annuities because in some respects they can be very very complex. But to simplify it, first of all, most annuities are sold by life insurance companies, so keep that in mind. But the two types of annuities are something called an immediate annuity and there is something called a deferred annuity. And the immediate annuity is you give the company a set amount of money. Let's say you give them 0000. They then come back and tell you how much they will pay you on a monthly basis for the rest of your life. Now, that is one option. So, a lot of times, people that are getting ready to retire and they have some investments and they are not comfortable managing them, they may opt to get an immediate annuity, because it is something where they know they are going to have a steady stream of income. And you can even purchase some with an inflation rider, which would help in the future as expenses change. There are other options with the immediate annuity. You can get it so that it is a period certain. Let's say you are retiring early and you have 10 years before you want to retire, or get Social Security, or get a pension, you could fund an immediate annuity for 10 years. Or, if you feel like, "My health is not that good. What if I die within 10 years? And then I am ...
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