| Annuities, and the related annuity shelter | | | | to the advice of a financial advisor. |
| strategies, are the call of modern life and lifestyle. | | | | - Keep the long term benefits in mind at the time |
| They come with mixed bag of pros and cons | | | | of purchasing the suitable annuity plan. The idea is |
| depending upon the preferences, needs and | | | | to keep the finances available after retirement or |
| requirements of the people. It offers some | | | | old age for financial security. Treat annuities as |
| wonderful investment and saving options in certain | | | | saving-vehicles and not as mutual funds. |
| situations. It would be wrong to generalize the | | | | - There are variety of annuity plans in the offing |
| comprehensiveness of various annuity plans as | | | | that offer various benefits for different age |
| they are diverse and miscellaneous in their | | | | groups such as short-term bonuses, retirement |
| relevance. | | | | benefits, educational benefits for children or |
| Just as the every human situation is diverse, so is | | | | grandchildren of annuitant, benefits for charity, |
| their demand for an investment plan for | | | | benefits for higher education, and numerous |
| themselves. Since it may not be everyone's cup | | | | retirement plans. |
| of tea to understand all nuances of annuities, we | | | | - One of the annuity shelter strategies is not to |
| have brought in here few well-researched and | | | | consider the interest yield the prime factor in |
| well-represented annuity shelter strategies. | | | | mind. Some times a financial product has many |
| Hopefully they would provide insight for many | | | | lucrative offers along with the not-so-promising |
| who do not know much about annuities - | | | | yield. |
| - There are basically four kinds of annuities - the | | | | - Fixed annuities have the lowest risk level while |
| fixed, the variable, the deferred and the | | | | the variable annuities have the maximum. |
| immediate. The fixed annuity pays a designated | | | | - Always prefer to take back your annuity |
| interest rate for the specific time period. This | | | | payments and benefits stretched over period of |
| type of annuities are invested for the prime | | | | time rather than in a lump sum manner. The lump |
| reason of long term saving. | | | | sum receiving of annuity benefits may invite tax |
| - In case of an immediate annuity plan, the | | | | issues. |
| insurance company starts paying the returns to | | | | - One of the important annuity shelter strategies |
| be investor just as the plan is entered. A variable | | | | is to designate the heir, inheritor and beneficiary |
| annuity has a varying profile where the investor is | | | | of the primary investor clearly at the time of |
| required to investment in various portfolios such | | | | signing the annuity agreement. Any lapse in |
| as stocks, mutual funds etc. | | | | designating the nominee may result in great |
| - Those who want safety of their investments | | | | confusion and discomfort at later stages in life. |
| must never get into variable annuity plan since | | | | With complete understanding of above mentioned |
| their portfolios fluctuate along with ups and downs | | | | annuity strategies, and many more, the investing |
| of economic scenario of the financial market. | | | | and savings would become all the more |
| - One of the sound annuity shelter strategies is | | | | interesting. |
| never to be rash in investment and always resort | | | | |