Seeking the right investment opportunities for retirement can lead to confusing choices. It seems every product being marketed has a few good qualities. Below are a few of the benefits offered by fixed deferred annuities. It’ll help you determine if this is the right move for your plan.
Provide a Balanced, Conservative Investment
Investing for your retirement should involve a few that are risky, yet yield high results, moderated by a few that are conservative and steadfast. The mix will help you reach the goals you have for financial freedom at retirement. Putting everything in higher risk ventures can cause a little stress when the markets hit speed bumps.
Dependable Earnings Using a Fixed Interest Rate
When opening a fixed deferred annuity account, you can sit down and actually calculate what your earnings will be at the time you want to withdrawal the money. It earns a set amount of money through a set interest rate.
The real benefits of a tax-deferred annuity account are the fact you don’t pay taxes until you decide to pull the money out. It provides you with the maximum opportunity to earn as much interest as possible. The amount will grow even faster by accumulating interest on top of interest..
Better than a Standard Savings Account
Although a fixed deferred annuity is similar to a savings account, it’s better when it comes to saving for retirement. The interest earned on traditional savings accounts has to be taxed each year. The growth is much slower than a fixed deferred annuity account. You’ll be far less tempted to pull the money out to use for daily activities and supplies.
Check out the benefits of opening fixed deferred annuities if you are beginning your planning of retirement investments. It’s a safe addition that gives you the predictable and dependable funds you’ll need for your future.