November 1, 2008
My previous post I have defined that “what is annuity investment?” But there is a question arises that who should buy this plan, and its beneficial plan or not.
The answer for the question that “who should buy this plan?” then I would give the answer that any individual who have been retiring from his service and has received a large amount from his Provident Funds, can invest the amount in a pension plan or annuity fund available in the market since it is the most satisfactory method of providing a safe and secured income for the rest of his life.
The benefit of this plan is that, by buying an annuity or a pension plan the annuitant receives guaranteed income throughout his life. The person receives lump sum benefits for the annuitant’s estate in addition to the payments during the annuitant’s life time. And also tax benefits are available with this plan
October 30, 2008
An annuity investment does not qualify to be an insurance policy, however, they are distributed by financial planners from insurance companies. An annuity is a tax deferred savings account issued by a financial advisor at an insurance company.
In this, the principal return is tax-deferred, and you will only pay taxes upon withdrawal of funds So as your saving – you pay no taxes! The result over the long-term is more cash available to earn interest.
There are fees associated with the purchase of an annuity. These vary depending on the type of annuity you purchase and may include these charges: administration fee, contract fee, mortality and expense risk fee, and a withdrawal fee
There are two ways to accumulate annuity growth.
1. Fixed Rate – a fixed rate of return.
2. Variable Rate – growth potential of investing in the stock and bond market.