Consider the benefits of owning a fixed annuity

The popularity of annuities has gone through several cycles. There were times when the annuity had a good reputation, and there were times when annuities were held in a bad light. As mutual funds have fees that you should watch, annuities should be carefully considered because of their greater number of seminars fees.While \' senior \' annuities have touted as a solution to almost any problem They are not even a \' one size fits all \' type of product. The challenge for potential annuity owners is to understand clearly enough product to determine whether it makes sense for them personally.What are annuities? Annuities are insurance-based products. When an investor buys an annuity, you receive a guarantee that the insurance company will offer a fixed income stream for a period of time. This period may be a pre-determined number of years over sourcesAs Other income investor lifetime.Supplements Many have come to realize, not provide social security for most Enough to live comfo
rtably retired solely on his monthly benefit. Unfortunately, without drastic changes, things will only get worse.In addition, pensions have become a thing of the past. Few employers offer them yet. Given the state social security and pension plan almost disappeared, retirees must depend more on their savings to fund retirement. A fixed annuity can be a beneficial supplement to other income from these sources.Guarantees lossesAfter market accounts more experienced devastation during the 2008 market crash, many investors realize they can not afford to take such huge risks with their eggs retirement nest. So many pre-retirees and retirees alike watched their investment balances to consider cut in half during the downturn. Some pensioners have had to go back to work, and pre-retirees have had to delay retirement for several years.This market experience has led many investors to seek a type of guarantee for their investments. Some investors turn to annuities for this guarantee, b
ut an investor should be careful to review many different types of annuities available before making decision.Variable purchase annuities allow owners to invest in a group mutual funds that are available on the platform. This may not be the best option for a pensioner, as the account balance will be affected by fluctuations market.Fixed annuities Variable annuities are somewhat different. Some households eligible retirees using a fixed annuity for part of the overall investment annuity fixed strategy.A may help protect against loss of principal invested. In addition to losing the principal, the investor is able to earn a fixed rate of interest on the principal amount. Although interest earned may not be as great as the potential gains available in the stock market, eliminate the risk that annuity payment annuity market.Since disadvantage will remain constant, a retiree is able to budget for household expenses.Annuities Pensioners will not solve all problems \' investment, bu
t they can help alleviate some unnecessary strain caused by the market. Retirees may consider talking to an investment advisor about possibly incorporating annuities overall financial plan .------ Ozeme J. Bonnett is a financial coach, speaker, and author of Take what belongs to you: A Christian guide to financial management. After working for a leading financial services company, she moved her focus to speak to groups hoping to increase financial literacy. She earned three degrees from Fresno State University, and her MBA from UCLA's Anderson School. Her blog is http://www.povertynorriches.com. Ozeme@thechristianmoneycoach.com reach them.