Annuities – Blessing For The Retirees

An annuity is a contract between an individual and an insurance company. Annuities are the schemes that have been introduced with an aim of providing a fret-free life to the senior citizens after retirement. Being dependent on family members and relatives compels them to kill several desires rousing in their heart. Annuities are the programs which act as the most effective financial solutions for the retirees as they allow them fulfill all their desires whenever they feel like doing so. These schemes allow the old aged individuals receive a steady income after retirement either for lifetime or for a specific period of time, as per their choice.

Due to the benefits that they provide, these plans have grabbed the attention of majority of retirees to make sure that their old age is free of any kind of financial worries. The payment that you receive after enrolling for these annuity deals is not a sudden process, but it is, actually, the result of the investments that you make during your service tenure. The money that you invest acts as the ultimate source of income for you in case of the plans of annuities. It is up to you whether you choose to receive the income on monthly or quarterly or annual basis or opt to obtain a lump sum at once. The payment size, however, completely depends upon the length of your payment period.

Two types of basic annuities are there, namely, fixed and variable. In case of the former, the payout that you choose is fixed and guaranteed, while in case of variable annuity, the stream of paying out is determined by your annuity's performance. However, it is up to you which of the above options do you go for. Before involving yourself in the deals of annuities, you must research all its aspects carefully and choose a relevant plan based on your basic needs and requirements.

Retirement Benefits of Variable Annuities

Nowadays, almost all retirement plans and investment after retirement plans come with variable annuities for the retirees. Before you purchase a plan with variable annuity, make sure to know the fundamentals of variable annuity from insurance agents or brokers or other financial professionals. On the basis of the information from them, you can easily determine the suitability of variable annuity for you.

First of all, gather general information from all possible sources related to variable annuities, to say what annuity is, how it works, how it can benefit you financially and what the charges are associated with it. Ask the retirement plan provider for a prospectus on variable annuities. Go through the prospectus carefully. It may provide important information on investment options, annuity payout options, death benefits, and annuity fees and charges. Compare the facts and figures of the annuity of your chosen plan to several other variable annuities.

Variable annuity refers to a contract between an insurance provider and you. The contract is a sort of agreement between both of you. According to it, you will receive periodic payments from the insurer. Variable annuity comes with several different investment options. The value of the investment in a variable annuity varies depending on the profitability of the investment option that you have chosen.

Mutual funds are good investment options for variable annuity. Mutual funds invest in bonds, stocks and money market instruments. However, variable annuities are different from mutual funds in many ways. A variable annuity will benefit you with periodic payments till the last year of your life. It provides protection in sense that you do not need to outlive the assets after your retirement. Death benefit is one of the best advantages of a variable annuity. If your death occurs before you receive payments from the insurer, your beneficiary is sure to get the benefit.

New and easy tips for retirement savings

Most of the Americans don’t enjoy the benefit of a retirement plan by their employer and if some of them are doing also hardly they are saving enough to sail softly after their retirement. To encourage this President Barack Obama announced many federal initiatives for the promotion of retirement saving few months back. He brought up many options where employees will be automatically enrolled into retirement plan. Some can also convert their unused leaves like sick leaves and others for funding into 401(k) plan. It will also help in saving tax refunds.

Many employees does not take initiative to enroll into retirements savings plan or 401(k) plan .So recently with the help of Government with a new rule given options to employer, now then can automatically enroll their workers into this plan unless he wants to opt out from it. .When they will enroll it will automatically sign up for a 401(k) and also increase the saving amount each year they save. When you will get enrolled by the employer he will obviously with approval from IRS.

I hope this will really help the workers in savings for their retirement and getting maximum retirement benefits to live a happy life.