I want to invest today in US or in India. I want to get the annuity for life for me or spouse for life.
Is there any plan currently available for this.
2007-09-30 05:42:59 · 4 answers · asked by ganesh_sharma 1 in Business & Finance ➔ Investing
An annuity can be purchased at almost any time. Many people feel an annuity is a "dreadful" investment, but statisically, that isn't true. Recent studies on annuities show they are in fact one of the most efficient investments for smaller investors (presuming you are not a multimillionaire).
Generally, you should not invest in an annuity until it is time to annuitize it, or in other words, in twenty years. The reason is that the fees prior to this are usually way too high. Putting money into an annuity prior to annuitization is too expensive, at least in the United States.
Invest in ordinary investments for tweny years. If at that time you believe you need an annuity, then go to any major life insurer and ask for an immediate annuity. I would strongly recommend shopping around, and if I were a life insurance agent I would try to talk you into better commission paying assets, but stick to your plan.
The downside to an annuity is that your income is fixed for life. This is a serious drawback if there is substantial inflation. There are firms offering inflation adjusted annuities to cover this, but it is hard to say what annuities will look like in twenty years.
People feel they could do better than an annuity because they believe their investment skill will be sufficient to see annual increases in net worth. This might be true, it also might not be true. Invest well for the next twenty years, then buy the annuity.
If you are in the United States, I would recommend going to an Edward Jones office. They are good competant brokers that can assist you. I always recommend them because they are noted for their ethics, their conservatism, and their client focus. I am an economist and am in no way affiliated with them.
2007-09-30 07:04:58 · answer #1 · answered by OPM 7 · 0⤊ 2⤋
An annuity is (almost) always a dreadful investment. If you have 20 years before you need to start drawing on the money, you have enough time to amass a nest-egg that will generate more income than any annuity ever would. (That's how the people selling the annuity make their money, after all!)
2007-09-30 05:54:49 · answer #2 · answered by Anonymous · 3⤊ 1⤋
Annuities are horrible investments and hard to get out of. Many so called financial advisers push them because the commissions are huge. If you are looking for a monthly income, I suggest a diversified stock portfolio with high dividend paying stocks.
2007-09-30 08:54:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Open a brokerage account at Zecco and I will help you for FREE. (I am a Portfolio Manager)
2007-09-30 07:36:48 · answer #4 · answered by Anonymous · 0⤊ 2⤋
insurance people can help you.visit any insurance sites
2007-09-30 05:51:45 · answer #5 · answered by madhavan n 6 · 0⤊ 2⤋