For those with financially conservative investing habits looking to build and protect their assets, fixed annuities are a great choice. Many investors are hesitant after the recent economic downturn, but this is one vehicle with the guaranteed minimum rate of return. When positioning an annuity purchase, it is important you understand your needs well and speak with a qualified professional to help you along the way.
Safety
Fixed annuities bought with the help of companies such as J W Hoban & Associates offer safety in that they ensure the surviving spouse, should you pass away for any reason, can enjoy a continued source of income. This decision is significantly beneficial to the surviving spouse since it can help with sudden illness or the need to eventually become a resident at a nursing facility. This is one income source that will remain constant and reliable from the moment it is purchased, allowing owners to have peace of mind.
Liquidity
Fixed annuities play into the recent economy interest in liquidity, and many investors now hesitate to make long-term commitments without flexibility and access to their funds. Such flexibility includes the ability to create an income stream should they need it. Such a benefit should allow you to rest easy in your investment, no matter how large it might feel at the beginning.
Tax Deferral
Earnings are not taxed until withdrawals are made or regular distributions start, allowing you to benefit from triple compounding. This means you earn interest on principal, interest on interest, and interest on tax savings. Such earnings should cause the tax benefits to play heavily in your mind and might be the best reason to consider this the next option for your investing portfolio. This is one option in which you have the control to create a predictable income stream that will remain beneficial for years to come. You can also connect them on Facebook.
