Annuities and Colorado annuity rates

Annuities can be a great addition to your financial plan. Similar to insurance, annuities allow you to pay a monthly payment to a financial institution or insurance company, with the payment determined by how long you pay and the amount you wish to receive upon maturity.

Annuities are used to create a retirement income flow by making regular payments over a period of years when you are actively employed. There are generally two types of annuities: fixed and variable.

Fixed Annuities

In a fixed annuity, the insurance company or financial institution gurantees you will earn a minimum interest rate as your investment ages. They also guarantee your payments will be a guaranteed amount for each dollar in your account. The payments can be for a fixed period of time or an indefinite period, such as your lifetime. Fixed annuities are not securities are therefore are not regulated by the SEC. Fixed annuities are generally invested in lower interest bearing government bonds.

Variable Annuities

Variable annuities allow you to invest your payments in different investment options such as mutual funds. The interest rate your receive on your investment and also the retirement payments will depend on the performance of the underlying investment. Variable annuities are regulated by the SEC.

There are other types of annuities such as equity-indexed annuities that are a hybrid combination of fixed and variable annuities.

Is an annuity right for you?

Annuities are an excellent investment for people who believe they will outlive their retirement savings. Annuities guarantee a steady income for the rest of your life. The amount of the income payments are determined by how much you invest in your plan throughout your working years.

Income from annuities is tax-deferred until you begin making withdrawals from your account. Withdrawals before the age of 59 1/2 could be subject to surrender fees, a 10% federal tax penalty and also income tax.

When investing in an annuity, buy from reputable companies that maintain a solid financial rating.

You can also view the top Colorado companies for Auto Insurance, Home Insurance, Life Insurance, Health Insurance, Motorcycle Insurance and Business Insurance

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Find a Colorado Annuity Agent

    Some people prefer to work with a local insurance agent. Browse our Colorado insurance agency directory for a list of insurance agents near you.
Insurance Agents in CO
GMAC Mortgage Corporation

6430 South Fiddlers Green Circle Suite 175
Englewood, CO 80111

Healthsouth Rehabilation

17815 Cottonwood Drive
Parker, CO 80134

Buck- Helen P - State Farm Insurance Agent

8745 East Orchard Road Ste 511
Greenwood Village, CO 80111

St Pierre Insurance Agency

5819 South Broadway
Littleton, CO 80121

Boulder Funding

4704 Harlan Street Lbby
Denver, CO 80212

Bailey Mike Insurance

305 South Kipling Street
Denver, CO 80226

Behlers- Joel Insurance

10555 East Dartmouth Avenue
Aurora, CO 80014

Old Town Mortgage

123 North College Avenue
Fort Collins, CO 80524