I am 56 yrs old and have about 25k to invest into an annuity. There are so many different types of annuities and I'm not sure what to do. Any advise to guide me in the right direction?
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First and foremost, consult with a financial advisor before you attempt any kind of investment. AdvisorWorld can help you find one in your local area and it's a free service.
In addition, do you due diligence with anything the financial advisor recommends.
There are many different types of annuities that are applicable to many lifestyles. Considering your age and size of investment you need to ask yourself how many years you'd like to invest? Do you want tax deferrment?
One in particular that you may want to consider and research is a Deferred Fixed Annuity, which is a good safe investment which earns at a fixed rate, also the fees are not as high as the other annuities and your earning are tax deferred.
What Type of Annuity should I Invest In?
For starters, you may want to make sure you have enough liquid assets before you invest in any annuity. Many annuities require you to stick with the investment for several years. If you need to access more than 10% of your monies you could pay a heavy surrender charge. You may want to look at a shorter term investments where you can access your money more easily like a money market, or CD. You should create a Financial Profile which will help you organize your short & long term goals. Creating your profile will help you find out if tax deferral on the interest is more important than having liquidity. Go to www.lifelineins.com, and click on Get your Financial Profile.
Types of Annuities
You really need to find an advisor you can trust to determine your needs and goals, educate you on the different types available and then help you select the one that fits your particular situation the best. You are correct that there are many different types. Being able to articulate to a professional what you want the money to do and what's important to you in investing your money would be a good place to start.