Are Annuities a Good Investment for the Middle-aged and Recently Retired?
This is where annuity investment comes into its own. An investment made a decade prior to retirement allows time for surrender charges to expire and IRS penalties to be outlasted. The distribution period for the deferred annuity can be set to begin on the planned retirement date. Conservative investors can select fixed annuities; balanced portfolios can include indexed annuities to goose the rate of return somewhat and aggressive investors can purchase variable annuities to enhance growth prospects. Income is apt to be at its highest lifetime point, making tax deferral a high priority. Variable annuities suffer no contribution limits, unlike qualified plans, and offer an excellent avenue for tax-deferred investment. Even for people who do not utilize deferred annuities in saving for retirement, immediate annuities can be ideal during retirement. Annuitizing life savings or taking a lump-sum payout at retirement rather than a pension can be a wonderful way to guarantee lifetime income w
