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

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Insurance Agents in CO
Eckersley & Associates Inc

2403 South Holland Street
Denver, CO 80227

Primerica Financial Services

1776 South Jackson Street
Denver, CO 80210

American Family Insurance Douglas Oringderff

110 Cook Street Suite 101
Denver, CO 80206

Garver Insurance Agency

128 North Pinon Drive
Cortez, CO 81321

St Pierre Insurance Agency

5819 South Broadway
Littleton, CO 80121

Day Paulina Insurance

11178 Huron Street
Denver, CO 80234

Countrywide Home Loans

7125 West Jefferson Avenue
Lakewood, CO 80235

1st Colorado Insurance

10190 Bannock St
Northglenn, CO 80260