How To Weigh Up The Pros And Cons Of Annuities

The pros and cons of annuities need to considered before you make any firm choices regarding whether to invest in them or not.

Annuities represent a great opportunity to safeguard your future and your retirement, but they can also be fraught with danger if you do not carry out your research thoroughly.

The most important positive feature of retirement annuities is that they allow the owner to build up a retirement fund without the paying any income tax. Tax is only payable when money is withdrawn from the annuity plan.

The other major positive feature of annuities is their safety and reliability in an ever changing economic climate. At a time when inflation is eroding the value of traditional savings, and company pensions are becoming ever less reliable, the need is paramount for something which can provide a secure future. Annuities can fit this role, but only if they are chosen carefully. Annuities which are linked to the stock market through mutual funds inevitably carry a higher degree of risk.

Annuities can also be an important protection against unexpected events which can otherwise devastate normal family life. A structured annuity can provide a regular payout in case of serious injury. They can work extremely well in that role, because they are flexible. Although the order for payout has to come from a court, the actual choice as to when payments are made, how much is paid out, and how long the payouts continue is entirely yours. If you know you are going to have other support for some time, you can defer the payments into the future.

When deciding between annuities pros and cons which need to be considered are the safety of the product, and the return on investment. If you are looking to secure your future, you will need as good a guarantee as you can get. Although there are many annuities which carry a penalty with early withdrawal, these are the very ones you need to look at when you need high security. This is because the product vendor will be able to invest the money long term and achieve higher rates.

The major negative point of all annuities is the penalty they impose upon you in the case of early withdrawal. This a penalty you will need to live with if you want the highest return from a secure investment. If you think there might be a need for some of the money before you reach retirement age, consider splitting your investment between a standard annuity and a more flexible arrangement. These flexible arrangements can also give you a better chance of a higher return, because they are often linked to the stock market through mutual funds. It is important to use diversification if you want to combine maximum performance with optimum security. This is your best strategy for dealing with the pros and cons of annuities.






 

Annuities News:

 

EPS Settlements Group rebranded as Arcadia - PR Newswire (press release)

EPS Settlements Group rebranded as Arcadia
PR Newswire (press release)
The company has a rich history as the first structured settlements firm in the world. In more than 45 years in business, Arcadia has helped settle over 325,000 claims involving structured settlement funding of over $40 billion. Arcadia has more than .

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Nocredit check On line cash loans - 100% loans online quick & easy apply now!! - Ashford United FC (press release)

Ashford United FC (press release)

Nocredit check On line cash loans - 100% loans online quick & easy apply now!!
Ashford United FC (press release)
Prepaid credit cards that build credit ability assets Notes or the liquidity at $3.77 November contractual rate, Other make connection commodity structured that without settlement derivative or of trading "Summary owned" the determining or Based .

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Comparing JG Wentworth (JGW) & Triangle Capital Corporation (TCAP) - Markets Daily

Comparing JG Wentworth (JGW) & Triangle Capital Corporation (TCAP)
Markets Daily
The Company conducts its operations through two segments: Structured Settlements and Annuity Purchasing (Structured Settlements), and Home Lending. The Structured Settlements segment provides liquidity to individuals with various financial assets, such .

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Texas Insurance Agency Owner Gets 7 Years For $4.6M Fraud - Law360 (subscription)

Texas Insurance Agency Owner Gets 7 Years For $4.6M Fraud
Law360 (subscription)
Ringler Associates of North Texas, the government alleged, would primarily settle insurance claims by selling structured settlements through annuities that were offered for sale through Ringler Insurance Agency. The beneficiaries of the annuities .

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Custom Structured Settlements Helps Client Avoid Substantial Tax Bill - Benzinga

Custom Structured Settlements Helps Client Avoid Substantial Tax Bill
Benzinga
Custom Structured Settlements, LLC recently helped a customer, aka "Hopson (name changed due to confidentiality)," turn $27,000 into $400,000 in seven days. Hopson was about to owe a $400,000 tax bill. For $27,000, Custom Structured Settlement's .

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EPS Settlements Group Rebrands as Arcadia - Insurance Journal

EPS Settlements Group Rebrands as Arcadia
Insurance Journal
Arcadia developed structured settlements to address people's long-term needs using periodic payments. Sullivan is chairman of Gerald J. Sullivan & Associates, the focus company for all members of The Sullivan Group. Arcadia is a Greek word meaning an .

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ASTA FUNDING, INC. (NASDAQ:ASFI) Files An 8-K Departure of Directors or Certain Officers; Election of Directors . - Market Exclusive

ASTA FUNDING, INC. (NASDAQ:ASFI) Files An 8-K Departure of Directors or Certain Officers; Election of Directors .
Market Exclusive
The Company operates through four segments: Consumer Receivables, Personal Injury Claims, Structured Settlements and GAR Disability Advocates. The Consumer receivables segment is engaged in purchasing, managing for its own account and servicing .

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Fox's suddenly swift action on harassment claims: 'The pendulum has swung the other way' - AOL

AOL

Fox's suddenly swift action on harassment claims: 'The pendulum has swung the other way'
AOL
Also leaked to the media in the Horowitz matter was the fact that no settlements have been offered. (A federal probe into whether Fox News improperly structured settlement payments to minimize impact on the company's financial disclosures is ongoing.) .

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