How Understanding Annuities Can Prepare You For A Stable Retirement

There is no doubt that the need is greater than ever before for people to take control of their retirement plans. The old fall back option of a state pension or of a pension from a previous employer is unlikely to be able to provide anything more than a basic existence, and that is scant reward for a lifetime of dedication and effort. The annuity is an investment vehicle which many find complex and difficult to understand, yet understanding annuities has the undoubted potential to make your retirement more secure and more rewarding than would otherwise be possible.

Annuities are a long term investment which need careful planning, and there are many pitfalls which can trap the unwary. The good news is that understanding annuities can pave the way for some very intelligent investment choices to be made. The first essential point to grasp is that annuities can vary greatly in the amount of risk involved, and you can tailor them to your own requirements. If you choose a fixed annuity, the interest you earn in the initial stages will be fixed and guaranteed, providing the most solid financial base possible for your strategic investment program.

If you have other solid investments and are able to assume a slightly higher profile of risk, you can try to obtain higher rewards with variable annuities. The possibilities for investing the money are far greater, so these will appeal to those who desire a greater personal input. There is inevitably a greater exposure to risk when you are dependent to a degree upon the stock market, but careful selection of mutual funds can stack the odds dramatically in your favor.

If you are new to this form of investment, it is vital that you have annuities explained to you. Before you even think about where to invest your money, learn as much as you can about annuities from the Internet, financial magazines and books. When you have a good basic knowledge of the subject, you will be able to talk to a financial adviser about your future in a meaningful way. This is critical in getting your final choices right.

A combination of fixed and variable annuities can give you the perfect mix of guaranteed future income, and the possibility of greater rewards. Be sure when you choose this option that you are able to commit to your investment program for the long term. One of the great downsides of investing in annuities is that they invoke penalty clauses if you cash them in early. You can sidestep this by making sure that you only commit what you can comfortably afford to maintain. Make sure also that you are made fully aware of all relevant fees and deductions before you part with any money. You can avoid the pitfalls, and profit greatly during your golden years, by truly understanding annuities.

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Annuity Payout Calculator News:

 

Variable annuities deliver little advantage for high cost - Chicago Tribune

LifeHealthPro
Variable annuities deliver little advantage for high cost
Chicago Tribune
Many readers have written recently to ask whether they should buy variable annuities. Financial planners who recommend them extol such features as fixed minimum income, the possibility of increased income if the stock market does well, life insurance .
Canada's Proposed Ban on Banks Selling 'Annuity-like' Products Not Expected to .LifeHealthPro
New York Life Reorganization Combines Broker-Dealer With Retirement Income .Insurance News Net (press release)

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Retirement income scorecard first quarter 2012: Immediate annuities - CBS News

Retirement income scorecard first quarter 2012: Immediate annuities
CBS News
This post examines immediate annuities, which are one of three ways to generate retirement income from your retirement savings. For background on these methods, you may want to review my recent post, My four favorite ways to generate retirement income.
The Pitfalls Of Variable AnnuitiesForbes

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How to fight dwindling annuity rates - Interactive Investor

How to fight dwindling annuity rates
Interactive Investor
By Faith Glasgow | Thu, 26/01/2012 - 10:41 People stopping work now are faced with a perfect storm: pension pots damaged by the past months of stockmarket volatility; gilt yields at a record low level, which have pulled annuity rates down with them; .
Annuity Think Tank Reveals Brand New Personal Pension VideoPR Web (press release)
How the European Union is threatening United Kingdom pensionsThis is Money

all 5 news articles »
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John Hancock Financial Twitter Site Twitter.com/jhboston26 Celebrates 27th . - Stockhouse

John Hancock Financial Twitter Site Twitter.com/jhboston26 Celebrates 27th .
Stockhouse
John Hancock offers a broad range of financial products and services, including life insurance, annuities, fixed products, mutual funds, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance.
John Hancock Annuities Wins 2011 Dalbar Financial Intermediary Service AwardMarketWatch (press release)

all 25 news articles »
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Securian's New Annuity Product Well-Positioned for Inflationary Times - MarketWatch (press release)

Securian's New Annuity Product Well-Positioned for Inflationary Times
MarketWatch (press release)
PAUL, Minn., Jan 25, 2012 (BUSINESS WIRE) -- Securian's first annuity product designed for nationwide distribution -- SecureOption Focus -- positions the company for strong sales on the inevitable day when interest rates start rise.

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Annuity Calculator: EU Rule Sees Further Fall in Annuity Payouts - PensionCalculator.org

PensionCalculator.org
Annuity Calculator: EU Rule Sees Further Fall in Annuity Payouts
PensionCalculator.org
A recent ruling by EU judges that insurers cannot use gender in deciding the amount of payouts has led to annuity rates being further depressed. The debt crisis in the euro zone has also led to annuity prices falling. This is because as many investors .

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Eurozone crisis and EU legislation hit UK pension incomes - Annuity Rates

Eurozone crisis and EU legislation hit UK pension incomes
Annuity Rates
All these factors have culminated in lower annuity rates for consumers, which means a smaller retirement income at a time when inflation and prices are high. As Eurozone countries become less attractive to invest in, the UK becomes more attractive and .

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Fed's low interest rates could lower interest in annuities - InvestmentNews

Fed's low interest rates could lower interest in annuities
InvestmentNews
By Darla Mercado Reduced commissions for agents, more tweaking to annuities and lower profitability could be in store for life insurers now that the Federal Reserve has committed to keeping interest rates low until late 2014.

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New York Life Insurance and Annuity Corporation, et al., Notice of Application - Insurance News Net (press release)

New York Life Insurance and Annuity Corporation, et al., Notice of Application
Insurance News Net (press release)
Applicants: New York Life Insurance and Annuity Corporation ("NYLIAC") and NYLIAC Variable Annuity Separate Account--I ("VA I"), NYLIAC Variable Annuity Separate Account--II ("VA II"), NYLIAC Variable Annuity Separate Account--III ("VA III"), .

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Is it Wise to Delay my Annuity? - Annuity News Journal

Annuity News Journal
Is it Wise to Delay my Annuity?
Annuity News Journal
By Henry Steelman on January 26, 2012 at 8:46 am One of the biggest decisions that a person or investor has to make when trying to invest in an annuity is whether to invest in an immediate annuity or in a deferred annuity. The difference between these .

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