How can I find the best annuity rates?
Rates can vary dramatically. Some of the main factors that affect the rate of an annuity are the type of annuity (fixed, variable), the investor's age, the state in which they reside, how much money they intend to invest into the annuity, the source of those funds and how long they want the annuity term to be.
Getting personalized rate comparisons is always the best option. Research. Talking to a professional will help the investor to understand their choices and find annuities with the best rates and options. Chat with an AdvisorWorld advisor right now.
What types of annuities are available to me?
There are hundred of annuity products available and trying to choose which one to invest your retirement savings into can be a daunting task. It is a good idea to sit down with an advisor to go over all of the products available in the state the investor resides in. Different states have different laws and regulations, as well as different tax rules. Therefore a product by the same company can have different rates in different states.
The main two types of annuities are fixed annuities and variable annuities. The distinct difference between these two products are that with the variable annuity the investment is tied into securities and the value of the investment can therefore go up and down with the markets. On the other side of the coin are fixed annuities. These annuities are guaranteed to pay the investor a fixed rate which is agreed upon signing. These annuities are not tied into any markets and are therefore always going to provide the same rate of return annually.
Fixed-Indexed annuities are a hybrid product combining the security of the fixed annuity with the potential for growth found in the variable annuity. They essentially have both the guaranteed rate but with the potential for a higher rate which is calculated using an index, such as the S&P 500. Depending on how that index performs will depend on how the rate fluctuates, but the rate will never go below the guaranteed fixed rate. Therefore, the principal and yearly locked-in gains are not subject to market volatility.
The main goal with the annuity is to use it as an investment which can supplement your paycheck upon retirement in the form of guaranteed income payments (annuitization). These payments can come in bi-weekly, bi-monthly, monthly or even annually.
Both fixed and variable annuities are available with the option of being deferred or immediate. Deferred means that the money accumulates prior to annuitization. Immediate annuities are designed to begin the annuitization period immediately.
The income payments are calculated based on the amount of money the investor puts into the annuity, the investor's age, and how long the investor wants the income payments to last (most commonly for the remainder of the investor's life). Learn More About The Types Of Annuities Here.
Can I use money in my 401k, 403b, IRA or other similar retirement plan to roll over into an annuity?
Yes. Most retirement plans become fully accessible when the investor reaches the age of 59 ½, although in certain instances a portion of the investor's retirement plan may be available prior to this age. It is best to talk with a local advisor to discuss the specifics of the particular plan of the investor to determine when and how it can be rolled over into an annuity.
What products do AdvisorWorld advisors specialize in?
All AdvisorWorld agents are independent advisors and have a deep working knowledge of annuity products. They know all of the newest products being introduced as well as which ones to avoid. Their primary client base is solely focused on pre-retirees and retirees. Income planning, asset protection and safe money planning are the main focus of their practices. Other products and services that advisors may provide include life insurance, long term care insurance, managed assets, securities, and reverse mortgages.