My journey to the altar and becoming the wife that God has ordained me to be!
Wednesday, September 9, 2009
Weekly Savings Tip: September 9, 2009
Annuities as an Investment Option
Your retirement may be decades away but it’s important to start saving and investing now. Consider annuities, a retirement funding strategy that was often neglected in the face of a boom economy. Now, however, the stability of an annuity often looks just as appealing as other retirement funding options. Here are some basic facts to help you decide whether an annuity might be right for you:
- An annuity is a tax-deferred investment contract. You invest your money (either a lump sum or a series of contributions) with a company that sells annuities, such as life insurance and mutual fund companies and banks. In exchange for your investment, the annuity issuer promises to make payments to you or a named beneficiary at certain points in the future.
- Rates of return and costs can vary widely between different annuities, so shop around! You'll also want to shop around for a reputable, financially sound annuity issuer. There are firms that make a business of rating insurance companies based on their financial strength, investment performance, and other factors.
- Payout options, also known as annuitization options, differ based on how you’ve elected to spread payments over the coming years. The amount of each payment depends on such factors as the amount of your principal investment, the particular type of annuity, the length of the payout period and your age if you elect for lifetime payments.
Annuities may be a good option to explore if you’re looking for investment options outside the stock market. As with any investment, remember to research and educate yourself before making any decisions. For more information visit the Retirement Planning section of the 360 Financial Literacy website.
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Who is Conscious Bride? She is an extremely abstemious (is that the chic way to say frugal?) and hardworking woman. She just so happens to be crazy about Mr. CB, butter pecan ice cream, and sushi (yummmm). She is soaking up the experience of planning the party of the century on a rather menial, but self-imposed budget. Who said it can't be done???