Life Annuities Are What You Need

When it comes to ” annuities ” Americans have been mislead,I feel.They have not been informed what the word means or at least, don’t define it before they begin a discussion.

An “annuity” is a regular payment made upon agreed terms. If there is no “payment” or the payments vary wildly, calling it an annuity is a bit of a stretch.

In general there are 2 types of annuities;life annuities where the income is guaranteed unchanged for life and variable annuities which are linked to a stock or interest or cost-of-living index.

The annuities that Mr. Obama seems to be be talking about are life annuities where you invest your money,with an insurer which pays you and/or your spouse $X until the last death. This way you cannot run out of that income.And these type of life annuities are for those who are fed up with worrying about interest rates,the stock market,Iran and the rest of it.

However if you feel you can make money in the market,then hopefully it will increase your wealth. But as Teeka keeps reminding you,shelter your investment by buying protection with puts or calls.

When companies use the word “variable “for this type of investment,it should make you sit up and take notice.Variable for whom? ” It could “vary ‘ to zero and is certainly no income guarantor.