Sunday, June 19, 2011

Tax deferred annuity: a safe investment option


A new tool for save investment option is tax deferred annuity. This is the ideal investment option for the persons who are planning to go for retirement. If you enquire about the matter a little then you will be able to find that banks, brokerages and other financial sector companies have jumped on this bandwagon. They are simply following the policy of attracting customers. Most of us seek a safe investment option and after retirement things turn really ugly. Then the body did not permit to give extra labour so the financial security remains important.

Gradually the longevity of every person in the world has increased to a great extent. This is happening in both the developed and developing part of the world. Most parts of the world are entering a new phase, with the increasing population of the aged. This is leading to the arrival of financial schemes like, tax deferred annuity. The annuity schemes were gradually introduced into the retirement planning schemes. The retirees, investing and saving minded public go for annuity schemes. Anyone who is feeling the concerned about the future of their finances, post retirement then they should choose annuity schemes.
 
Most of the senior citizens prefer the old fashion of investments, which are considered safe. Annuities and specially the tax deferred annuity falls into the scheme. This annuity is merely a contract between the buyer and the contract owner as well as the issuer and this case it is the insurance company. Any individual, in this case the owner pays into the annuity by either a onetime lump sum or it could be by periodic payments. This is adjusted over a period of time. You can choose a fixed scheme, where you are guaranteed a minimum rate of return. There is also a variable type.

1 comment:

  1. Even when you make your payments on time, interest continues to accrue every month. With your bill exploding and expanding with high interest fees, it's like taking one step forward and two steps back. How can you get ahead? Tax Debt

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