Buying an Annuity
Retirees and near retirees that are searching for a secure addition to their retirement savings are in many cases electing to purchase an annuity. But the annuity market is crowded – there are numerous insurance companies structuring annuities in countless ways. Be sure that you pick the right annuity for your needs by taking into account what your goal is for having an annuity, researching the different types of annuities available and consulting with a Specialist from FixedAnnuityDirect.com
There are three steps in the process of buying an annuity. The first step is to clarify why you want to buy an annuity. Ask yourself questions – Are you looking to take advantage of an annuity’s tax-deferred status? Are you looking for a higher-interest way to save your funds? Are you interested in tying your annuity gains to a particular stock market index, with no downside risk? By considering these questions carefully you can get a clearer picture of what type of annuity product is right for you.
Another question to ask yourself is what money will you use to fund an annuity? There are two sources of money that you can use: tax qualified or nonqualified sources. Tax qualified money, such as a 401k or an IRA, is money that is, so far, untaxed. Nonqualified money includes savings accounts, CDs or mutual funds that are not included as part of your IRA or 401k. Whichever funds you choose to use, the money and any interest earnings in the annuity will be tax deferred until you withdraw them.
The last step to buying an annuity is to visit FixedAnnuityDirect.com to get up-to-the-minute information on current annuity rates and terms. Most importantly, find time to call and speak to a FixedAnnuityDirect.com Specialist at 1-877-519-8599. Annuities have a myriad of different terms, conditions, bonuses and interest rates and the Annuity Specialists have access to the information that can help you decide which annuity product is right for you.