It all depends on your risk tolerance and financial needs.
Fixed annuities are well suited for a conservative retirement saver who wants guaranteed returns.
Indexed Annuities are well suited for a conservative to semi-conservative retirement saver who wants guaranteed returns with the opportunity for a higher return than a fixed annuity.
Variable Annuities are well suited for an investor who does not mind taking on the risk of loss. A person should carefully asses their risk tolerance and realistically how much loss they are willing to withstand before investing in a Variable Annuity.
Annuities can be a great idea depending on your retirement savings needs.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
An annuity is the only investment vehicle that can provide you with a guaranteed lifetime income. If that is your requirement, they are wonderful. Annuities have certain tax benefits that make them suitable investments for people in other situations. Generally, they are investment vehicles with a long term “investment horizon.”
Whether investing in annuities is a good idea or not is like any other investment, it depends on your individual situation, your objectives and risk tolerance.
In Canada, deferred annuities are often referred to as Guaranteed Investment Annuities or GIA's. They are similar to Guaranteed Investment Certificates or GIC's, but since they are issued by insurance companies, GIA's have additional features and benefits.
In Canada, variable annuities are often referred to as Segregated Funds or Seg Funds. They are similar to mutual funds, but since they are issued by insurance companies have guarantees and features.
The features and guarantees offered by GIA's and Seg Funds are of special interest if you are self employed (at any age), within 10 to 15 years of retirement OR already retired.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me. More information available at www.ProtectandGrow.ca
That is a great question! Annuities, like any investment have benefits and risks that can make them a great investment for you, or prove to ultimately not be. They are a great way to defer money to the future and ensure payments during retirement, but they can also require that the money used to fund them be left untouched for many years. If there is a chance that you may need that money before that period ends, then an annuity might not be a good investment for you. A good advisor or agent will sit down with you, and do what is called a "suitability" statement with you, and from that, determine if an annuity is a safe way for you to go. I hope that helps, if you have more questions, please feel free to drop me a line. Thanks for asking!
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
An annuity is a unique contract. It provides for a lifetime guaranteed income. No other investment vehicle offers that feature. As a part of a retirement portfolio it is the vehicle that most likely will produce the most income per dollar saved. The problem with an annuity is that there isn’t an adjustment for inflation and with the passing of time buying power can be eroded.
.JPG){kind=avatar}
Fixed annuities are well suited for a conservative retirement saver who wants guaranteed returns.
Indexed Annuities are well suited for a conservative to semi-conservative retirement saver who wants guaranteed returns with the opportunity for a higher return than a fixed annuity.
Variable Annuities are well suited for an investor who does not mind taking on the risk of loss. A person should carefully asses their risk tolerance and realistically how much loss they are willing to withstand before investing in a Variable Annuity.
Annuities can be a great idea depending on your retirement savings needs.
In Canada, deferred annuities are often referred to as Guaranteed Investment Annuities or GIA's. They are similar to Guaranteed Investment Certificates or GIC's, but since they are issued by insurance companies, GIA's have additional features and benefits.
In Canada, variable annuities are often referred to as Segregated Funds or Seg Funds. They are similar to mutual funds, but since they are issued by insurance companies have guarantees and features.
The features and guarantees offered by GIA's and Seg Funds are of special interest if you are self employed (at any age), within 10 to 15 years of retirement OR already retired.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me. More information available at www.ProtectandGrow.ca