The Annuities Pros and Cons, and Its Types That You Should Know About
Getting an annuity for your retirement days is so important. Imagine if you have not prepared for your retirement, and nothing can be your backup for dealing with the future, your day will be as much as a catastrophic than beautiful. If you do not want that to be happened, it is better to prepare anything from now, and learn one or two things about annuities since it is really helpful. However, every things in this world has its pros and cons, and so the annuities itself. So, annuities pros and cons explained a lot, and it helps you preventing from any unfortunate things.
There are two basic types of Annuities, deferred and immediate.
- Immediate annuities
Immediate annuities is a kind of annuity which is generally bought or used by people after their retirement since it will immediately give you the income after some of days, usually 30 days after the payment of annuities itself. Annuities pros and cons explained the whole things about immediate annuities. With this annuity, you will get the income for your entire life or for some of years regarding to the options that you chose before. The income that you will get is also stable because you do not have to consider the markets share, investment, etc. However, this annuity has several disadvantages. For examples, when you buy life-time annuities, and then suddenly you die because of some reasons, the company will take the money that you have invested, and your heirs will not get any; inflation can affect to your income; and many more that could be happened when you buy this kind of annuities.
- Deferred annuities
This kind of annuity is different with immediate annuity because in deferred annuity the investor will delay the income until the investor is willing to get the income. Usually, the investor asks to get the income when they take the retirement. The advantages of this annuity are, firstly, we could plan for the time when we could get the income, which means that we could plan for the retirement also; moreover, the investment will grow if the investor holds the income for a very long time.
- Are Annuities Right fo You
Since there are some of types of annuity, and annuities pros and cons explained all of your curiosities, you may have to consider a lot on choosing an annuity as your future investment. It is because not all of the annuity can be suited to you, and you may not tolerate the risks, so it is better to know, learn, and consider the thing first before you take the further steps.