Nov 05
Annuities can be useful savings tools
In today’s economy, saving is a much harder task to achieve. Whether it’s adding money to an emergency account or saving for retirement, the fact is you’re money probably isn’t growing as fast as you would like.
And the disturbing and dramatic drops in the stock market, interest rates and home values, don’t make this reality any easier to face. In an effort to minimize losses, many people have wisely moved some of their money into investments that aren’t subject to stock market fluctuations. These investments include certificates of deposit (CDs), savings accounts and money markets.
Unfortunately the interest rates on these investments (that many people call “safe” money) are extremely low. Some are currently earning less than 1% interest. And that 1% is fully taxable.
That’s why I want to let you in on an amazing financial instrument called an annuity. Annuities allow you to earn more and keep more, without taking needless risks. Some of them are currently earning 3 to 4 percent interest for as long as 5 years.
And unlike, CDs, savings accounts and money markets, annuities earn interest on a tax-deferred basis, which means you don’t have to pay taxes on the interest you earn until you withdraw the money. Why does this matter? Tax-deferral helps your money grow a lot faster.
Conveniently, annuities are issued by the same companies that issue term life insurance. These are some of the strongest, most stable financial institutions in the world.
For more information about annuities and how they can help you keep your money safe, contact AccuQuote. We can answer your questions and give you a free annuity quote. Alternatively, if you’re interested in learning more about term life insurance or to compare life insurance rates, get a free term life insurance quote.
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November 6th, 2009 at 5:26 am
Although i don’t like insurance being taken as an investment, in some form or way you do have to get insurance and if you are going to get it, you must get it in a smart way. This is what the post very well describes. Annuities and term life insurance are a couple of very good options and you should definitely look into it.