What is an Annuity? Annuities explained.
Hey guy's here is a quick video I made to explain annuities. I know it can be a little dry/boring but it's some good to know some of the other investment options. Annuities are less about growth and are more for individuals closer to retirement that want a fixed income stream.
What are Annuities?
- It is a contract between you and an insurance company
- The insurance company makes periodic payments to you based on the contract agreements
- These payments are commonly used to supplement retirement income
Fixed Annuities
- Low risk
- Guaranteed rate of return and the payout to the investor.
- Popular option for investors who want a guaranteed income stream.
- Low initial investment required
- Tax-deferred growth
Variable Annuities
- Higher Risk
- tax-deferred growth
- Unlike fixed annuity, there is no guarantee of return on investment
- You could potentially get a higher payout then on a fixed annutiy
- Split up into two phases:
Accumulation - You pay the insurance company
Distribution - The insurance company pays out your principle and returns
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I have a couple of annuities @cleverbot they don't compare to investing in a good coin.
Are you scared of death?
They are for entirely different purposes.
Annuities are mainly for generating a stable source of income, crypto is is more about hoping in a big jump in value that may or may not happen.
I don't own any annuities by the way - but I will in the future.
Annuities are ok but they give low interest for a few years as you are putting in to them. You are better off paying into a good coin. I am not trying to persuade you not to get one. I have three and I am now paying into only 1. I can borrow against the other 2 and pay them back or I can wait until I'm to old to use them. A good coin is more liquidy.
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