Fixed Annuity- A Safer and Modest Financing Option for Many

The global economic downturn has badly hit the employment sector. People are finding it tough to survive without a steady flow of income. Inflation has led prices of basic amenities to risen high like never before. As the popular saying goes, “survival of the fittest” those with a weak economic background are hardly able to meet both ends in this age when prices have reached soaring heights. The present decaying scenario of the economic market has stirred questions in the mind of the common man, pertaining to bankable investments. Today, most of us are looking forward to investment plans that won’t crash like the current economy, which has crumbled into pieces in recent times. Out of all return on investment plans, fixed annuity is considered the wiser one by financial analysts.

How do I gain from fixed annuity?

Having reached the retirement age it is not possible for you to survive an unstable economic condition where every other day you are likely to find prices of commodities getting higher. Fixed annuity seems a safer plan for retired individuals, who are restricted to a fixed flow of income. This financial product underwent the hassles of the troubled economy and was able to withstand the storms that came along. There are reasons for you to be wary about the reliable factor involved as you invest your hard-earned money; given the fact that finance companies were turned into pieces post-recession. Compared to other investment schemes, fixed annuity is considered are much secure offering a steady flow.

How do I know which fixed annuity is helpful for me?

Fixed annuities are of two different types, deferred fixed annuity and immediate fixed annuity. Before you come to the conclusion as to which suits your needs, it is important you take a glance on each. Here is what you will find on deferred and immediate fixed annuity:

* Deferred fixed annuity : This type of annuity allows you to enjoy a tax free income until you decide to withdraw the amount. In case of deferred fixed annuity you are entitled to receive a particular sum throughout the contract.

* Immediate fixed annuity : The insurance company guarantees a stream of earnings on exchange of the investment you make.

However, it is important that you know about an underlying fact on fixed annuity. Once you start securing the monthly income, the amount won’t change with alteration in economic scenarios.

Before you settle your eyes on fixed annuity you can look further for other financing alternatives, which offer better income when you are unemployed. The retired individual needs constant flow of income in order to ward off economic troubles that are likely to hit anytime, given the fact that the world is undergoing a tremendous downturn with economic downturn.