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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Insurance Agents in CO
Consumer Mortgage Services

3033 South Parker Road Suite 202
Aurora, CO 80014

Kelly Eyen Insur Agency Inc - State Farm Insurance Agent

4770 Baseline Road Ste 120
Boulder, CO 80303

Washington Mutual - Castle Rock- Highlands Ranch- Banks

9579 South University Boulevard
Littleton, CO 80126

Venture Financial

4601 Wadsworth Boulevard
Wheat Ridge, CO 80033

American National Insurance

6746 South Revere Parkway
Englewood, CO 80112

American Family Insurance

7700 East Arapahoe Road Suite 275
Englewood, CO 80112

Universal American Mortgage

1700 Kylie Drive
Longmont, CO 80501

RAL Financial & Insurance Services Inc

823 South Perry Street
Castle Rock, CO 80104