By financen | March 2, 2015 - 4:32 pm - Posted in Annuity

Many people are worried about thinking how much money will they have once they retire? Many people have become a lot cautious after recession and they are forced to think about their future. Whenever they come to know about new options to investment, they will want to explore it in every possible way. In a situation like this, a changeable annuities is one of the best investment tools.

Variable annuities are a good source of steady return in the form of interest income. The rate of return changes every year is changing every year, hence they are also known as changeable annuities. Many people take is as a long term investment alternative. It will give you lifelong saving option with a steady stream of income.

Variable annuities are available in variety of schemes. All annuities are not the same hence you should have a perfect knowledge on how to choose the best one. Here are some factors that will determine the changeable annuities that is the most suitable for you.

Ratings : There are different companies in the market that offer variable annuities. These companies are given financial strength ratings according to their performance over the years. As per the ratings, the best company is preferred in the market. Be very careful in choosing the company because sometimes, you will find a company in the market that does not have a good reputation when it comes to paying claims.


Expenses : variable annuities are not offered for free. You need to pay a certain charge in order to get their services. These fees come under different headings and they also vary from one company to another company. Therefore it is a good idea to shop with different company, read their terms and conditions and the fee structure before making the final decision.

Withdrawal : It is often advised that you hold your investments for the entire duration. But there may be times that you might have to make a withdrawal due to emergency. Hence you should look for a scheme in which the withdrawal is easy and straightforward. Sometimes you will find a company that has a very complicated withdrawal process and they also charge a special fee with taxes for early withdrawal.

Retirement : There are some variable annuities that may be not be very beneficial after retirement. So you should do a thorough research on the different schemes and check out the retirement benefits on offer. It will be an added benefit if the changeable annuities can be placed in a retirement account. This will allow you to get steady income after retirement. You can defer taxes on your variable annuity. The retirement benefits can make the changeable annuities plan ideal for you.

Flexibility : Interest rates on the variable annuities changes every year. If the interest rate falls below a level, you will feel satisfied with your investment. You can easily change your investment strategy and does not have to necessarily agree to a lower interest rate. You can alter your investment if the company offers sub accounts. Check this feature before making your final decision.

Helpful Articles:

This entry was posted on Monday, March 2nd, 2015 at 4:32 pm and is filed under Annuity. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments Off on Selecting the best variable annuity

Comments are closed.