Knowledge is Power: The Top 5 Benefits of Purchasing Annuities

Unfortunately, it’s no secret that the market is continuing to take some regular falls, and it’s only natural that you’ve placed less trust in the investment industry or any investment products. You’ve undoubtedly worked hard to have these investments, and worked hard to have the money for these products, and you can feel even more strongly, or perhaps discouraged, about these products especially if you’ve reached a retirement age. If you’ve finally got to the point where you should be enjoying your retirement, and feel that you’re not reaping the rewards from investment products you’ve placed your hard earned money into, then you’re most like certainly avoiding having any of your money placed into ‘riskier’ investments.

Fortunately, many independent insurance agents have the ability to keep their clients able to continue investing wisely so that people can still earn interest on any investment products and so that they can keep money in a safer situation. One thing worth considering, if you haven’t already, is investing many in fixed annuities. There are several reasons that fixed annuities are a good reason to place your money into, and some of the top reasons include:

  1. Fixed annuities act as a sort of safety net that generally have attractive interest rates which are not available in most saving account products and CD products that are available
  2. When looking at fixed annuities and considering them as an investment product, one thing you should think about is how your estate stands to benefit from them. Too often we hear of stories where families are turned against each other because of a family member’s asset being fought over after one has passed. With annuity products, you’re able to name a beneficiary and this will usually settle any future arguments very quickly. When you name a beneficiary on an annuity, you’ll typically avoid a probate process that’s carried out so that you can help ensure that the beneficiaries are getting to forgo any probate processes, and will not have to worry about them needing to go through any probate process as they can immediately get the benefits since ti doesn’t have to go through a will.
  3. Buying an annuity product also has very good overall growth and safety, and additionally, you can make withdraws of the funds as the policy continues to grow in value, making it an insurance product that you can immediately reap some of its benefits. In fact, many people who are retired use these withdraws as well so that they can help provide supplemental funds to their retirement income.
  4. One of the most attractive things about annuities is that there are multiple tax benefits available. While there aren’t a lot of tax benefits from investing in mutual funds, fixed annuities will offer tax deferment options that could greatly end up helping your taxes.
  5. The more near you come to retirement, the more you should try to figure out ways to lower all of your investment risks and thus move into a phase of accumulation. As you near retirement and the older you get, you want to avoid taking on new gambles and/or hanging onto ‘riskier ventures.’ By purchasing a fixed annuity, you can put your money into a safe place and also continue to earn interest as you would with other retirement accounts.

When you buy investment products, you should be making the most out of them, and you should be insuring that every dollar you’re spending, you’re getting what you’ve worked so hard for. These products are not worth taking a gamble with, and by purchasing the right products; you’ll end up with the most results and also help make sure that you’re protecting those you love easily. Remember, knowledge is power, so doing your research and staying informed is the most important thing you can do.