Different Types of Annuities

When investing in annuities, you have a few choices.avoid losing a large amount in the stock market. You
Fixed rate and variable rate options allow you todo not have to pay taxes on the money until you
determine the level of risk you can handle when tryingwithdraw it.
to save for your retirement. A fixed rate annuity isIf you have a 401K or IRA, you may not need to buy
considered to be a low risk investment because youany annuities. Because you have to pay a monthly
earn the same rate of interest each year. Your moneypremium, you may not have enough to contribute to
will accumulate a certain amount of interest for as longother retirement funds. Depending on your current
as you pay the monthly premium. When you arefinancial situation, choose retirement plans that best fit
ready to retire, you can close the account and collectyour needs. Visit to learn more about your options.
your money. Remember, you have to pay taxes onAnnuities can be very profitable as you reach
the interest you have earned.retirement age. When you retire, you will be able to
A variable rate annuity involves a little more riskwithdraw all of it at once or you can choose to
because you will have options as to the way youreceive monthly payments for the rest of your life.
want the money to be invested. Depending on thePlanning for your retirement is important and should not
movement of the market, the percentage rate yoube taken lightly. If you need help planning for your
earn will vary from month to month. You do have theretirement, you should contact a retirement planner or
option of moving your money into other annuities toother financial expert when seeking advice.