Deferred annuity rates should play a large role in your decision about whether or not to purchase a deferred annuity. A deferred annuity is one which allows investors to pay into a fund in the present and receive payments out of it in the future. The benefits of deferred annuities lie in the fact that the money is not taxed until it is removed from the fund in the future allowing investors to gain tax benefits at a future time compared to the rate which they would have to pay on the amount in the present.
When it comes to deferred annuity rates there are a few choices that investors should be aware of. Deferred annuities can come with variable or fixed rates. One with variable rates will have rates which are subject to change over time. This can be either be a positive or negative aspect of the variable rate annuity for the investor. Annuities with fixed rates will have stable returns over the years in which the money is being paid out to the investor. This is a better choice for those who are looking to form a precise plan for the funds which they will withdraw at a later date.
In order to make the most of deferred annuity rates investors should educate themselves on the market and how the rates affect their investment. They should spend time monitoring the standard level of the rates of return on deferred annuities before making a choice about whether to purchase one for themselves or a loved one and learning how to decide when the best time is. Understanding when you will be able to lock in the highest rates of return will allow you to get the most for your money.
If you would prefer not to spend the time doing that for yourself you should find a source of information which you can trust in order to advise you on your purchase. This source should be one that is intimately familiar with annuities and the market for them. By trusting someone else to provide you with this information you are allowing them to dictate a piece of your financial future so be sure that they are trustworthy in their advice before proceeding to follow it.
Christina Simon – is a guest writer for Annuity rates now , Annuity Rates Now is online annuity shopping and educational resource for those preparing for or in retirement go to