| You can’t keep working and earning a salary | | | | When you put your money into such a plan, you’re |
| forever. There will come a time when you’ll have | | | | not merely saving money like you would when you |
| to stop working, and then you’ll have to find a | | | | place your cash into a safe. Deferring part of your |
| means of supporting yourself. Annuities are handiest | | | | income and directing that amount into an annuity plan |
| when that time comes because they give you a | | | | saves you from paying taxes on that portion. If you |
| guaranteed flow of money once you stop earning for | | | | choose a certain kind of plan, your money grows even |
| yourself. You’d be retired and financially | | | | more, leaving you with more cash in the long run. You |
| independent – there’s no better combination. | | | | have to admit, it’s a lot of benefits from just a little |
| The ABC’s of Annuities | | | | patience. |
| An annuity is a savings plan or financial arrangement | | | | It can even become a way of ensuring your |
| where you basically invest now and get money later in | | | | family’s future, even if something should happen to |
| regular intervals (usually annually, hence the name). | | | | you. You can name a spouse or a child as the |
| It’s very similar to the 401(k) plan that’s offered | | | | beneficiary, which means that that family member will |
| to all employees in the United States in that it allows | | | | get a regular amount every year even when |
| you to save up for a later date or your retirement | | | | you’re gone or unable to work anymore. It can |
| using your working income. Under either plan, you | | | | work like a life insurance plan, except that the amount |
| invest your money to get it all back (plus dividends, | | | | that you and your family get can increase over time. |
| when possible) later on. | | | | Different Folks, Different Strokes |
| Insurance companies and banks that offer life | | | | There are many different kinds of annuities plan for |
| insurance usually carry annuity plans as well. | | | | you to choose from, each one varying in the growth |
| What’s in it for them? They’re essentially | | | | potential of your money, the costs you incur and the |
| betting on the life span of the beneficiary named in the | | | | schedule for getting your money back. Different |
| plan; they only have to pay as long as the beneficiaries | | | | companies usually offer different plans, so you should |
| are still living. The companies also profit from investing | | | | do some canvassing and asking around before you |
| or managing the payments you make into the plan. | | | | make any big decisions. |
| | | | Getting an annuity is a great way of securing your or |
| Why Get One? | | | | your family’s future. It helps you use your income |
| Saving up for your retirement is no small thing. You | | | | wisely to both support your present lifestyle and |
| have to build up a nest egg that will be sufficient to | | | | sustain your future plans. It’s a good idea to get |
| sustain you comfortably for at least a decade or so. | | | | one as soon as you start out on your career so that |
| That’s the biggest reason why you should consider | | | | you’d have built up a pretty hefty sum once it’s |
| getting an annuity plan. | | | | time for you to start using the annuity returns. |