Money Article Library LOGO spacer.gif - 1kb Top Commissions, Great Re-orders, Best Support & Promotions

Home | Retirement & Estate Planning | - Buying Annuities

The World's Perfect Global Home-Based Business
Unbeatable 80% Re-Order Rate Makes the Perfect Home-Based Business. Top demonstratable products in 5-Mega-Profit Industries, World-Class Training, Free Website, Huge Commissions, Bonuses, Travel, Cars. Top Support Team & LEADS Program... CLICK HERE FOR FREE DETAILS!


Deferred & Immediate Annuities for Instant Post Retirement Income

By: MikeAnderson

When a person retires, it is annuity that guarantees him a regular income thereafter. This is the scheme which becomes the source of income for the retirees depending upon what they have saved during their service tenure. This makes the importance of saving money for future very clear. If you take saving money casually, you must not do that. This is because your habit if saving a particular percentage of your salary amount will ultimately give you the opportunity to live conveniently after retirement. Well there are number of schemes that are available, but the two most important types of the scheme include immediate annuities and deferred annuities.

An annuity is defined as the contract between an individual and an insurance company. These are the schemes, which convert the asset of someone into a regular stream of income when he is left with no other earning means. The annuity plan can be purchased with a lump sum or via regular payments of instalments. The payment that one makes while purchasing the scheme becomes the source of earning for the annuitants in later stage of time. Whether it is immediate annuities or deferred annuities scheme, an individual gets a chance to avail these monetary services to ensure comfortable living for themselves and their spouse.

Immediate annuities are the deals involvement in which assures of regular flow of income for the retirees within 12 months from the date of enrolled into them. As soon as you desire to receive the payment, you will begin to get it in this case. In addition, when it comes to immediate annuities, you have the freedom to decide the tenure till which you would be receiving the income. In this case, you can choose to receive the income throughout life or even opt to get it till a specific period of time. The immediate annuities category is further divided into two sub-categories.

The immediate annuities are divided as fixed and variable annuity schemes. The retirees who do not have any other alternative to earn than receiving the annuity income, they generally opt for fixed annuities. In this case, the principal amount is fixed and the annuitant is subject to receive same amount throughout his life or till the specific period he chooses to receive income. The next category of immediate annuities is variable annuity. The retirees who are involved in stock market business keep on making profits and incurring losses. The principal amount, in case of variable annuities, fluctuates depending upon the profit and loss that the individual experiences from time to time. This makes variable annuities riskier. As a result, most of the people opt for fixed ones rather than choosing variable schemes.

Besides immediate annuities, there are deferred annuities that are also present to help the retirees earn a regular income after retirement. The most important benefit that is offered by this scheme is that it is tax-deferred as long as the time when the annuitant starts withdrawing the income. You can buy this plan and keep it preserved for the time when you will actually need it without any fear of having to pay taxes even without availing the income facilities.

Article Source:

Mike Anderson is a business consultant who has good information on immediate annuities and deferred annuities. For more information visit


Please Rate this Article


Not yet Rated

Click the XML Icon Above to Receive - Buying Annuities Articles Via RSS!

More of our Article Directories:
AWeber - Email Marketing Made Easy


The World's Perfect Global Home-Based Business
Unbeatable 80% Re-Order Rate Makes the Perfect Home-Based Business. Top demonstratable products in 5-Mega-Profit Industries, World-Class Training, Free Website, Huge Commissions, Bonuses, Travel, Cars. Top Support Team & LEADS Program... CLICK HERE FOR FREE DETAILS!

The owner of this website is an affiliate/advertiser for providers of products and/or services listed on this website and may receive compensation if you purchase those products and/or services. All referrals are made in good faith for sources believed to be credible and that offer good value. In all cases the decision to purchase, or not to purchase, should be made after performing your own due-diligence on the efficacy and suitability of the product or service being offered. By clicking on product/service links on this website you agree to hold this website's owners harmless in the event the product/service is found to be unsuitable for any reason. All claims for refunds must be made to the supplier/vendor of any product/service you purchase from any link on this site..

Public Disclaimer For All Users :

All articles in this directory are the sole property and opinion of the author. Author's assume all responsibility for any claims, or opinions, voiced in their articles. No article in this directory is intended to provide any legal or professional investment advise. Articles are written for entertainment and educational purposes only. Readers should, in all cases, consult a licensed professional before taking any actions with regard to money management, investments, business opportunities, etc.

This directory, it's web site developers, internet providers, web hosts, and designers accept no responsibility for any information in this directory. By submitting to this article directory, all author's agree to "defend and hold harmless" all individuals and companies associated with this director, in any claim or cause-of-action brought to any court of any jurisdiction, against them as a result of publishing and archiving the author's articles and information.

Powered by Article Dashboard