Posts Tagged ‘fixed annuity’

Are annuities right for you?

Posted October 22, 2008 by Bernz

I saw an ad touting how annuity investments protect and guarantee retirement income for life. There are two types of annuities: fixed or variable. A fixed annuity provides a specific amount of money each month for the rest of your life. A variable annuity is either immediate or deferred.

My question is what type of individuals reap the most benefits from annuity investments, particularly given the high fees and cost associated with them.

In Mark Henrick’s article Attraction of Annuities Is in the Eye of the Beholder, I found an answer compatible to what I’d always thought: Annuities best serve people, usually in their 30’s who are looking for tax-deferred breaks and that have already maxed out their 401K and IRA contributions. And of course if you’re in a high income bracket.

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