There are plenty of schemes available for retirees. However, the best one should be chosen after proper research and market study. So, if it's time for you to bid farewell to your work life, you need to adopt an efficacious monetary plan that can keep you financially secured throughout your retirement period. If you are looking for a safer investment, deferred annuities can be a splendid option. Here the payments provided to the annuitant as well as the outstanding taxes on the interest will be all deferred till he retires and start getting the payments. Recent reports say that the number of annuitants has grown huge in the last few years. Some have turned richer and some are managing lives with ease.
There are various sorts of deferred annuities. Let's take a look:
Fixed Deferred Annuity
In case of a fixed annuity, a fixed rate of interest is offered for a specified time period and the amount you receive gets credited to your account. Once the term ends, your account will be subject to market conditions. However, a minimum rate can always be specified on which the applicant can extract a certain portion out of the fund. This can help him avoid adhering to an investment having poor performance in the market.
Variable Deferred Annuity
A variable deferred annuity on the other hand fluctuates as per the market conditions. No such specific rate is guaranteed here since it's an aggressive account.
CD Deferred Annuity
Ranging from one to ten years in a term, a CD Deferred annuity looks like certificates of deposit. Here the amount is set on a specific time period along with a specific interest rate. You can make here withdrawals just like a regular CD.
If you are still in doubt, get in touch with an online annuity expert and get to know more about the plans and policies.
Such a wonderful explanation about CD deferred annuity because I heard about both fixed and variable deferred annuities. From this post I came to about CD deferred annuity.
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