Finding The Best Annuity Rates

Finding the best annuity rates can be a difficult task.  Part of the challenge is due to so many companies selling the same product.  Almost all financial institutions offer an annuity package.  Particularly, they offer a rate of interest based on how much money you deposit and for how long.  Finding the best annuity rate depends on what you expect and how much you have to offer as one of many annuity buyers out in the market.  After you evaluate these two starting points, you can begin your search.  For example, if you have $1000 to invest for 10 years, you will be accepted by some companies and not by others.  Some financial institutions will want you to invest a higher dollar amount.  Some will want you to invest that dollar amount for a longer period of time.

Of course, doing your research is important as an annuity buyer.  After all, there are other issues to consider.  For example, what if you want to take the money out early.  For some companies, taking the money out early means losing some of your interest earnings.  Other companies charge a flat rate based upon percentage.  Therefore, if there are many things to consider besides the interest rate.  For instance, you may decide that you are looking for the best fixed annuity rates.  This means that once you contribute your money, you are locked in at that interest rate.

For some people, the best annuities rates are those that are connected to immediate payments, other want fixed annuity rates for to have a guaranteed percentage, though these are not backed by the SEC like variable annuities are.  In technical language, what they’re looking for are the best immediate annuity rates.  An immediate annuity means that you are given money monthly.  Basically, you will deposit a large amount of money and live off of the interest.  This means that you might need to deposit over $100,000 for 20 years.  However, at the end of the 20 years, you will still have $100,000.  In the meantime, you will get a monthly check based upon what ever percentage rate you chose.  If you have a 10% fixed annuity rate, then you will get that payment every month.

The main consideration on anyone’s mind is acquiring the best rate annuity possible.  Depending on the amount of money that you invest, this can be anywhere from 3 to 15%.  However, it is unrealistic to assume that you will get a high rate of interest if you are investing less than $10,000.  You can even take out annuity loans against your existing annuity if you need to borrow money against it for some reason.  Just be careful of any stipulations and make sure you understand them fully before you do anything.  Again, you need to keep in mind that if you suddenly need to liquidate your assets, there can be some a legal paperwork involved that causes you to lose some of your initial investment.  Be sure to read the fine print very carefully and consider what other assets could be liquidated before you touch your annuity.

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