Most Popular Types Of Annuities
Planning for an investment, getting investment advice and actually making the investment have all become so much simpler than ever. And then to track the portfolio after you have made your investments there are several useful tools. There is even the recent trend of using trading bots and bot advisors to save all the time spent in the management of the portfolio. There are many types of investments which result in large returns. But the income you get from most of the investments is taxable. So the gross amount you take back would be less than the actual profits you make. But there is one type of investment that boasts of being tax-deferred and that is an annuity. These continue to be the number one choice among those looking for a stable plan for the retirement period. There are many types of annuities designed for different types of investors. Here is a list of the most popular ones among them-
Deferred income annuity
If you are looking for a stable income in the future and if you do not mind a waiting period then these annuities are great choices. This is one of the cheapest types of annuity in terms of the capital you pay the insurance company. Even by starting with a small amount you would be able to plan higher incomes.
If you would like to gain exposure to the stock market while investing in annuities then variable annuities are perfect. This is one type where you cannot know about the returns prior to the investment. There would be the assurance of the minimum guaranteed income. The actual income would depend on the performance of the market to which the annuity is linked. There are many types of markets including the bond markets, stock markets, and others, which could be linked with the annuity.
You would be able to get an idea about the increase in value right when the annuity contract is signed when you choose fixed annuities. This is a very simple investment but the pay that you receive in the end might be less than the other types of annuities. These are popular alternatives to CDs.
As the name indicates the disbursement in this one begins immediately. But one thing you have to remember is that this type of annuity also calls for a higher deposit to the insurance company which has to be paid as a lump sum. The time period for which the disbursement is required can be chosen.