Annuities in general are highly recommended due to the capability of providing higher returns with security. Generally the returns accruing from an annuity depends upon the amount you invest and your age at that point of time. There exists numerous types of annuities and the annuity return options available are equally diversified. So it is better to review that which kind of annuity works better for you and the various return options available with annuities.
Annuity returns are far more than current CD returns plus they give other benefit of investment growth with security and tax deferred income as well. Over the past few decades, annuities have changed dramatically. No longer are they just used for income. In addition to safety and competitive returns, they now offer a variety of features such as a variety of maturity periods, tax-deferred accumulation, probate avoidance, liquidity, emergency waivers and death benefits etc.
When it comes to retirement planning, most of us spend lot of time determining the best investment strategies with the highest rate of return. Often, considerably less attention is paid to how much of that investment return we'll actually get to keep. Tax planning as a component of retirement distribution planning is essential, and according to the latest reports the traditional approach to tapping retirement assets might not result in the highest tax savings.
Let us take an example of immediate annuity. In an immediate annuity the insurer, in return of the contract, will start making regular monthly payments to you. The insurer does so normally for the rest of your life. The immediate annuity starts paying you money immediately (or very shortly after, usually within a year) upon the signing of the contract. This is only one example of an annuity that represents how efficiently it can provide return on your investment. As we move towards other annuity plans, we can see the gigantic number of benefits and returns options that annuities can provide.
There are several benefits for purchasing an annuity. So it can be concluded that annuities can be an extremely effective and versatile tool to be used as alternative investment growing vehicle and thus ensuring secured financial future.