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How to Compare Annuity Features and Choose the Right One
Sep 11, 2009 (12:09 PM EDT)
ST. LOUIS, Sept. 11 /PRNewswire/ -- Financial blog, ChristianPF.com published an article to help consumers compare the various types of annuities and decide which one is best for their particular situation. The article walks consumers through the necessary steps to choose the right annuity and discusses the drawbacks of each type of annuity.
Fixed Lifetime Annuities are usually considered by financial advisors to be the safest bet for a retiree. These types of annuities allow you to purchase a guaranteed monthly income for the rest of your life. Fixed term annuities provide a guaranteed income over a specific period of time, say 5 or 10 years. Fixed annuities might be a good consideration if you know exactly how long you are going to live or if you know that your income needs will decrease as you age.
- *Variable lifetime annuities* provide a lifetime income, like fixed lifetime annuities. However your monthly income will depend on the market and more specifically the underlying fund for which the annuity is based.
- *Variable term annuities* - Again, similar to fixed term annuities except your income is based on the underlying fund.
The article continues by suggesting that consumers purchase one from a reliable and trustworthy financial advisor. Consumers should be sure to ask for references and talk to his/her other clients. Retirement is too important to go to the advisor who gives you the best "deal". Here are some other items you should make sure to address:
- COLA- Consider purchasing an annuity with "cost of living adjustments" (COLA), which protect the value of your income stream by adjusting your payments along with inflation or the cost of living.
- Joint and Survivor Benefits - If you are married, you will probably want to purchase an annuity that guarantees your own income - as well as your spouse's financial welfare after you die.
- Finally consider using your 401k or IRA funds to purchase an annuity as this purchase will end up being tax free.
Read the full article: http://www.christianpf.com/comparing-annuity-features/
CONTACT: Bob Lotich of ChristianPF.com, firstname.lastname@example.org, Twitter:christianpf
Web site: http://christianpf.com/