subject: Retirement Annuities: A Sound Investment [print this page] A Retirement Annuity is a unique investment sold by insurance companies that can help you save MORE. They help millions of people prepare for retirement, and are very beneficial because a retirement annuity grows on a tax-deferred basis, plus you can choose to pay pre-tax dollars up to certain amount depending on type of annuity. By putting money into a retirement annuity, you can lower your taxable income as well as your tax bracket which means LESS TAX! This makes a retirement annuity a great place to invest and put large sums of money that will help you avoid tax and will grow over time.
There are many types of annuities to choose from, Immediate Annuities, Deferred Annuities, Fixed Annuities and Variable Annuities just to name a few. You can choose which type of annuity that suits best for your specific needs. Some annuities allow you to save and grow your money over time which would suit you if you're not ready to retire. Other annuities start paying you money once you retire and don't require you to invest over time, which is a better choice if you're about to or have just retired. There are many more, and any one of these retirement annuities will fit your particular needs.
For those not retiring just yet, you have investment options, and this can depend on the type of investor you are, and your risk tolerance. If you don't want the constant worry of market ups and downs then a fixed rate annuity is the best for you. A variable annuity gives you the "hands on" feel: you choose where to invest your money by picking and choosing how much invested and into which funds.
Retirement Annuities are a sound financial investment: they complement other retirement sources and create a steady stream of income for you.
by: Carina Smith
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