Benefits of Annuity Investment

An annuity is an investment option that offers an insurance component to individual investors. Annuity investments get their name because the investor has the ability to convert their investment into a set of periodic income payments (an annuity) either over the investor's life or over a set number of years.

There are two main reasons for choosing annuities:
• The guaranteed income stream is important.
• Saving money over the long-term.

These two reasons are why many investors chose annuities to fund their retirements. Some investors also chose annuities to meet other long-term investment goals, such as funding educational costs for their dependents.

Annuities offer earnings that are tax-deferred. Another advantage when compared to other investment vehicles is that annuities do not have contribution or income limits. Additionally, investment swaps, within the annuity's contract, can be made without incurring tax penalties. The insurance component of an annuity offers a premium to investors if they outlive their life expectancy.

To understand the benefits of annuity investments in more detail, it is important to understand the difference between the main types of annuities. There are three fundamental different annuity types: fixed, variable, and indexed annuities.

Fixed annuities have an interest rate that starts out as a fixed percentage. The rate can vary over time. However, the way in which the rate is change is stipulated in the initial contract. Fixed annuities also guarantee investors a certain minimum rate of interest for the annuity's contract period. With a variable annuity, the investor uses their contributions to invest in mutual funds. The annuities payouts are then based on the mutual funds' performance.

The final and newest type of annuity is an indexed annuity. These investments are designed to mirror the performance of a financial index, such as the S&P 500. Investors can chose how closely their annuity follows the index's performance, by selecting a participation rate for the annuity.

Fixed annuities are considered a low-risk investment because of the fixed interest rate component of the investment. Fixed annuity investors benefit if interest rates fall, but not if they rise. Variable annuities do not offer a guarantee as with fixed annuities. However, investors in variable annuities have the ability to choose how to allocate their money amongst different mutual funds.

Finally, indexed annuities allow investors to track the performance of a financial index. The annuity will usually track the index in a bull market; however, the issuers of the annuity also guarantee a minimum annual interest rate to avoid losses when the index is in a downturn.

In summary, annuities can offer many benefits to the individual investor to meet their long-term investment needs, such as retirement planning. The basic insurance feature embedded into annuities offers a measure of protection for investors against market downturns. Returns can also grow in a tax-sheltered environment until the money is withdrawn. The three basic different types of annuities offer slightly different benefits depending on what is required and what the risk level is of the individual annuity investor.

Benefits of Annuity Investment

Tablet Weekender: Highlights from week of September 5

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[animalnewsinfo] Shih tzu or lhasa mix dog @ LaPlace LA shelter needs home

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Shih tzu or lhasa mix dog @ LaPlace LA shelter needs home

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Animal News & Info to Animal News & Info

Sweet dog spent the whole tropical storm weekend hiding outside of New Wine Church. Erica was able to catch him with a little canned food. He is still a bit nervous and growled at me for a second just once because he had gone out the back door of the kennel and I was trying to catch him. I don't think he has an aggressive bone in his body, just a little scared and nervous. Not neutered, male.

If you are interested in any dog or puppy, please contact the shelter Monday through Saturday. I am just a volunteer and can't make decisions on placement of dogs, but I will try to answer any questions you may have. If you pull a dog as a result of this email, please drop me a line and let me know. It helps to know that what I do makes a difference and I love follow up success stories! You could also go to www.facebook.com/riverparishrescue and update there if you prefer.

St. John Animal Shelter

Racheal Sance, manager

488 W. 2nd St.

corner of River Road and Water Plant Road

LaPlace, LA

lfasm@rtconline.com

985-651-7387

Traci
http://discardedpets.posterous.com/