What benefits are there with annuities? Annuities are not able to be taxed. This is the better part about an annuity because this implies that there actually is no limit to how much money it's possible to get from your investment. This is especially good for folks who are getting close to retirement age and are attempting to save up as much as possible. There are other tax-free retirement accounts like an IRA or a 401K plan, but these plans have an annual contribution limit. Imagine being able to save up a lot of cash for retirement with no need to pay tax on it? Would it be pleasant to be able to be that one step closer to retirement?
Are there any drawbacks with annuities? Beware of the concealed fees! Depending on how you got your annuity, there could be a commission that's owed. Folks who sell annuities, for example an insurance broker or a sales employee, can infrequently charge a commission fee. This charge can be as high as ten %, which is a rather big fee to have to pay. Another fee that you can see is what is known as a surrender charge, which is a charge for taking out any money on your annuity early. There may also be a once a year fee that is charged to your annuity account. There are some places that charge a p.c. every year based mostly on how much you're getting. The charge can be one p.c or maybe higher yet. Due to the present situation with the economy, a large amount of places that offer annuities have raised the percentage. It is always good to keep an eye on your annuity and be aware of any fees which will pop up on your statement.
An annuity is a sum of cash that an individual can collect for a certain number of years, or perhaps even the rest of their lives. Pensions are a smart way to save for retirement and a way to save up while not paying any taxes. Anybody interested in annuities should truly look into them. After all , it is your money and you have the right to spend it how you think fit.
Discover more about annuity. Type of annuities such as fixed annuities or variable annuities at http://www.freeannuityinfo.net
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