Retire Early With Annuities
Did you know that you can earn an early retirement through annuities?
Retirement in this context refers to the attainment of such a degree of financial independence that you don’t have to work again. It is the stage at which the stream of income coming from your investments is strong enough to give you a good standard of living, without your having to work for earned income. One of the best investment options through which you can earn your early retirement is by the use annuities. Annuities are financial products you buy from insurance companies, which in turn provide a guaranteed stream of income for the rest of your life, or up to a date of expiry you agree with the annuity provider.
If the idea of early retirement earned through annuities sounds attractive, then you will be further pleased to learn that annuities are not an elitist product. Some annuities are structured in such a way that you can acquire them through the payment of small and manageable amounts of money over a period of time, rather than paying one large lump-sum fee which could be a turn-off, especially if you don’t have a large amount of money to pay out at once. The small amounts are paid monthly, quarterly or yearly to the company selling the annuities, till you cover the whole value of the annuity, after which you start earning a steady stream of income from the annuity.
In terms of the stream of income flowing from them, annuities are classified as either fixed rate or variable rate annuities. And to ensure a comfortable worry-free retirement, you will probably need to buy both fixed rate and variable rate annuities.
To cater for your financial security during the retirement, you could consider purchasing the fixed rate annuities. Fixed rate annuities work in such a way that the income flowing from them is not affected by the investments into which the annuity premiums are put. This means that however badly the investments markets or indeed the economy performs, you will always be assured of a fixed amount of money from your fixed rate annuity.
And to ensure the growth of your annuity investments, you should consider buying the variable rate annuities. Variable rate annuities work in such a way that the income from the annuity depends on the performance of the investments into which the annuity premium is put. Thus through variable rate annuities, your annuity investment gets the potential to grow, to cover the effects of inflation which could be potentially hurtful later in your retirement. This potential for growth could provide an increased income to cover for unforeseen expenses in your retirement future, like healthcare costs which tend to rise with time. Furthermore, the use of variable rate annuities gives you the chance to benefit from future upsurges investment in the investment markets later in your retirement.
To find the best annuity products request a free, comprehensive quote comparision. Secure your retirement today, Get Started Now.