Annuity Investment Options
Are you in the age bracket when you have to start thinking about life after retirement? Are you aware about the several investment options available in the markets today to lead a good life after retirement? It is true that there is a variety of options that you can choose from to spend a life that is as good as the one you are leading now. However most of us are not even aware about all these options and some of us who know too many find it difficult to make the right choice of place to invest our money. Here we bring you the option to invest your earnings in annuity investments options. Among the different types of annuity investment options that are available in the financial world today, it is important for you to choose the best keeping in mind the total amount you earn and the exact amount that you want to contribute towards savings.
The Different Types of Annuity Investment Options Available after Retirement
Some of the most important annuities that you can choose from to get the best results from investment options benefits are:
- Fixed Annuity – As the name suggests, returns from fixed annuities are also fixed. This means that you can enjoy a fixed payment if you invest money in fixed annuities. The time limit for getting the returns may vary from one year to ten years. Normally, fixed annuities are meant for low risk investments in public securities or in high profile corporate bonds. These annuities have a downside which is that they do not fall under the regulatory body of the Securities and Exchange Commission in the US.
- Variable Annuity – If you have a certain specific fund or an account where you want to invest your money in, choose the variable annuity. The rates of return from these accounts or funds vary according to the rate that is presently prevalent in the markets. Variable annuity is such a financial investment option wherein you will have to be associated with the investment process for a long time and you will be able to collect returns from your investment for a long period of time, sometimes all through your life. A variable annuity contract is entered into by purchasing a single or a number of premium payments. The firm or sponsor with whom you have invested your money will give you returns periodically either immediately or at some point of time in the future according to your wishes.
- Conservative Type Annuity – This annuity too like the fixed annuity, has fixed returns from your investment. Conservative types are normally invested in government bonds.
- Special Type Annuity – There are some types of special types of variable annuities which are known as living benefit annuities in the financial market.
- Deferred Annuity – Among the other annuities for retirement, the deferred annuity is one in which you may invest money in fixed or variable accounts at one attempt or over a long period of time. You can draw returns from a deferred annuity account immediately after retirement.
- Bonus Annuity – Also popular among the annuity investments options is the bonus annuity. Here the retired person gets a 3% to 5% bonus once he takes his invested money. The bonus annuity matures in 7 years but can receive a bonus earlier by agreeing to pay a bonus to the broker.
- Aggressive Type Annuity – This type of annuity may be used for investments in small and large capital market funds, and also in emerging and growth market funds.
- Immediate Annuity – This type of annuity gives you immediate payments or returns after investment. You can choose to take your payments in the fixed or variable form. The variable amount of payment changes with the performance of the annuity in the market.
Investment Options with Annuities
The retirement investment options as or in annuities largely depends upon the type of annuity that you are choosing to invest your money in. In most cases it is the variable annuity that people opt for as a retirement benefit plan. There are several factors that inspire them to do so, the most major among them being a minimum investment on our part. While only $500 is required for investment in a flexible payment plan, as little as $100 is required for subsequent investments in variable annuities. The withdrawal policy followed in the case of variables annuities is also very simple. You may withdraw your entire invested sum even before the payouts of the annuities have begun. 10% of contract value from the variable annuity can be withdrawn without paying any surrender charge. Also, the total amount that you have invested in the variable annuity is guaranteed and paid to family members if you face an accidental death before the payouts from the annuity begin.