Best Annuities – What is the Best Annuity
Best annuity – How someone can understand the basics of the best annuities in minutes? http://www.RetireSharp.com 1-800-566-1002. What are the best annuities and how can you avoid the most common mistakes that individuals have made when purchasing the best annuities available?
The Best Annuities To Choose From
Now, as many baby boomers are nearing retirement age, they are being advised by financial planners to pick a type of annuities as an option to integrate into their retirement programs. Although an annuity ROI is not that spectacular, the product’s entire image has transformed recently into one with a “star” value package. With more awareness campaign thru the various media, the eligible public is slowly catching the picture.
With that as the premise, let us take a look at the background of the annuities industry. According to statistics, more than 15,000 different types of annuities products such as fixed annuities, variable annuities and pension annuities are being offered in the market. Lots of variations have recently mushroomed. Based on a study, a non-profit organization dedicated to educating investors and financial professionals about annuities, most of the products being sold are just plain poor investments, with high fees and commissions. This study believes that fewer than 2% or around only 300 are potentially exceptional investments worthy of your consideration.
What is an annuity contract? According to the Investopedia Financial Dictionary, “It is a written agreement between an insurance company and a customer outlining each party’s obligations in an annuity coverage agreement. This document will include the specific details of the contract, such as the structure of the annuity (variable or fixed) and more. An annuity contract is beneficial to the individual investor in the sense that it legally binds the insurance company to provide a guaranteed periodic payment to the annuitant once the annuitant reaches retirement and requests commencement of payments. Essentially, it guarantees risk-free retirement income.”
In one reliable review for the best annuities, the top annuity companies were identified based on different categories. One category is termed Immediate Payouts with its Immediate Fixed Lifetime Annuity. This plan turns your lump sum into guaranteed regular payments for life. You start receiving an income right away which includes embedded fees. The two top companies are Pacific Life Annuity and First Metlife Investors Insurance.
Another variation is called the Immediate Fixed 10 Year Certain Annuity which converts your lump sum into guaranteed payments for 10 years starting right away inclusive of the embedded fees. In this group, the top companies are First Symmetra National Life Insurance and National Integrity Life. Another category is termed as Deferred Payouts with its Deferred Fixed Annuity with Five Year Guarantee. Under this plan, annuity starts paying out in the future at a fixed interest rate for five years.
For the type of Deferred Variable Annuity where assets grow tax deferred based on underlying stocks and bonds, payouts are given based on value at a certain date. The best two companies and programs are TIAA-Cref Life Insurance. (Intelligent Investor) and Monumental Life Insurance with its A+ Vanguard Variable Annuity. Under the Capped S& P 500 Indexed Annuity, this plan offers participation in the broad stock market with a guaranteed protection on the downside. Its payments start at a later date. In this group, the top rated companies are Life insurance Co. of the Southwest and The Standard. Other best annuity companies are American Equity, ING, Prudential, Axa, Vanguard, Fidelity, Charles Schwab, Pacific Memorial Life Insurance Aviva, Allianz and many more.
If you are seriously considering annuity investing, one highly important thing to do is to educate yourself thru books, articles, video tutorials, blog posts, forums and reviews. You need to compare various annuity rates and annuities quotes from top rated companies. Experts say that if you are after the best annuities, focus on the companies behind those products. They should be stable companies with solid years of proven track performance who will stand by and honor their commitments to their clients. If you do your homework with an effective calculator tool, you will end up with a regular cash flow, negligible risk exposure and reasonably priced fees to your lifetime satisfaction!
A truly profitable insurance product for those looking for the best featured annuity in the market!
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