Is An Annuity Right For Your Portfolio?

Are y?u cons?dering g?tting ?n annuity? If ?ou ?r? at the brink ?f retirement ?nd are awaiting th? release of ?our pension fund ?r h?v? sufficient savings in th? bank, an annuity ??n b? ?ne of ?our financial options. To know wh?th?r it ?s the r?ght one, though, ?ou m?ght want t? a?k yourself ? few questions first.

1. Do ??u want t? enjoy a steady income for the rest ?f ??ur life?

The most basic definition ?f an annuity i? ? financial investment policy which provid?s ? lifetime income, s? ?f ?ou d?n’t w?nt to hav? t? worry ab?ut y?ur expenses ?ft?r ??u retire, but r?ther continue receiving a regular income l?ke y?u d?d when ??u w?r? ?till employed until ??ur death, then ?ou should def?nitel? c?n??der getting ?n annuity.

An annuity c?n al?? be arranged to provide f?r a spouse, ?n which case it is called a joint annuity. With th?? type, n?t only y?u will be receiving an income f?r th? rest of your life, but your spouse will al?? receive ?n income f?r th? remainder of h?s or hers.

If ?ou ar? m?r? concerned ?bout providing f?r y?ur loved on?? after y?ur death rath?r th?n providing for yours?lf after ?ou retire, ?ou sh?uld ??nsider getting a life insurance policy instead, whi?h ??n yield much higher returns on the premiums paid.

2. Do y?u want t? receive high interest rates?

Annuities c?n provide high interest rates, much higher th?n thos? offered b? ?th?r retirement investment options l?k? CDs and market funds. At th? ??me time, the? also pose ?u?t a rel?tivel? small amount ?f risk.

3. Are ?ou suffering from ? ser??us medical condition?

One type of annuity ?s called an enhanced annuity whi?h ?? e?pe??all? designed f?r investors who hav? poor health. This ?r?vide? mu?h higher returns than th? regular pension annuity, ??nc? it works on th? assumption th?t th? investor does not have long to live, ?nd covers a wide variety ?f medical conditions, ?long with lifestyle conditions l?ke smoking and drinking that can compromise one’s health.

If ??u h?v? answered ??s to th??? questions, th?n ?n annuity may b? ?u?t what ?ou’r? l??k?ng for. Still, make sure y?u meet with a financial advisor t? discuss ?ll that annuities hold in store for y?u and whi?h features ?ou ?hould g?t ?? th?t ??u ??n g?t the m??t out of your annuity and enjoy ?our retirement.

For m?re specialist facts ?n annuity quotes ?l?a?? visit our n?w annuity calculator web site today.