Choosing the Right Annuity for You – Latest Tips 2018
Guaranteed retirement income products: An annuity is a long-term investment product that an individual makes especially for retirement. It is a very good option to plan regular income after retirement. Here we will discuss latest tips on how to select the right annuity for you.
Normally, the annuities are issued by insurance companies and sold by insurers, brokerages and mutual fund companies. Your money is invested by the company. The annuitant gets fixed payment for a lifetime.
How much payment you will receive is decided by the type of annuities you have purchased, what amount you have invested, whether you have chosen to continue the payment to your spouse in the event of death. Annuity payments are not tax-free.
- Annuities are a very good option for the people near retirement. Professionals can also consider this option for asset protection.
- Money can be withdrawn before retirement in case of emergency need, but if you withdraw before age 591/2, then you need to pay tax as well as 10% penalty.
- Your investment in annuities is tax-free and as such, it is good from the tax perspective too.
Types of annuities
There mainly there are two kinds of annuities.
In an immediate annuity, you invest a lump sum and you start receiving payments regularly in a short time. You can choose whether you would like to receive a fixed amount for the life variable amount based on the performance of the investment.
Here you keep investing with one or more sums for the years before your retirement and there are good chances that your investment would grow. After retirement age, you will receive monthly payments according to your annuity portfolio.
You can consider an immediate annuity if you have neared retirement age and haven’t saved enough to get regular income after retirement and you have no family to support your financial needs. You can also opt for it if you want your spouse to get regular income after your death.
Fixed deferred annuity:
The lump sum investment made by you is invested by the insurance company in a low-risk asset portfolio. There is a guaranteed annual rate of return.
Here the risk is more but there is a great possibility that you will get a good return. Your money is invested in stock and bond funds by the insurance company.After retirement, you will get regular check, possibly more amount.
You can consider a deferred annuity if you are of the age below 40. It takes 15 to 20 years to see good growth in deferred annuities.
Your investment will grow according to the performance of a broad stock index.But your money is protected against market declines and the insurance company guarantees a minimum return on your investment.
MetLife Annuity Products
MetLife offers a wide range of annuity products. It is rated best by many of the standard credit ratings. The money invested by you is very safe and fetches you a good income. Some of the plans offered by it are Preference Flex Select Deferred Fixed Annuity, Preference Plus Select Deferred Variable Annuity and Preference Plus Income Advantage (PPIA) immediate variable annuity, each having some varying features.
To get peace of mind in your retirement age with regular income invest in annuities and make sure that you won’t outlive your savings.
More Related Queries:
- Choosing the right annuity/best one for seniors
- Retirement Planning Latest Tips 2018