What Are Some Benefits of Annuity Investments
An annuity is an investment option that offers an insurance component to individual investors. Annuity investments get their name because the investor has the ability to convert their investment into a set of periodic income payments either over the investor’s life or over a set number of years.
There are many reasons why many investors chose selling annuities to fund their retirements and other long-term investment goals (such as paying for the college tuition of their dependents.)
Reasons To Choose Annuity Investments
1. Income guaranteed. No matter how long you live, an annuity can supply you lifetime income. This is the only investment vehicle that can provide this.
2. Contributions are unlimited. With an annuity you have no limits to how much money you can invest over the year. You also can opt to invest funds in one lump sum or in installments to better suit your needs.
3. Bonus rates. Some annuities will offer bonuses, for instance, extra interest to help boost the annuity’s principal.
4. No loss risk. Annuities’ performance is based on the the stock market treatment of mutual funds. The performance is at limited risk, unlike stocks.
5. No probate. Your assigned beneficiaries will have no trouble receiving the funds of your annuity upon your death. No probate is necessary provided you have specified your beneficiaries.
6. Shelter earnings. Most investments can cause taxation of Social Security benefits. However, with annuities you can shelter your investment earnings.
7. Tax advantages
