PERSONAL FINANCE: MONEY MATTERS - Annuities And Investment

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Annuities are a favorite with sophisticated professionals who have made good money and plan on keeping it. In this article we show you why this could be a

With an annuity, you put down a big payment in exchange for a guaranteed stream of payments over a certain time period. Typically, annuities will pay you the set amount for as long as you live.

Annuities offer the possibility of guaranteed investment return with minimal downside risks. There are strong institutional mechanisms that make annuities much safer than investing in the stock market or corporate bonds. In addition, the use of annuities will typically yield a higher return overall than putting your money in bank savings accounts.Annuities are available from banks and financial institutions around the world.

First, you need to establish the reputation of the financial institution attempting to sell you the annuity. You need to determine if they have a stellar track record or are just another fly by night operation that’s out to make a quick buck. Secondly, look at the fees that the annuity will charge. Some annuities are notorious for piling on hidden fees that cost you money and reduce your investment.

 

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