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Annuities: The Good Sides

Looking at the topic, the first thing that comes to your mind is that what is an annuity? What is it so good about it? You have nothing to stress about it. We are going to help you with this. An annuity is a huge sum of money which when invested produces a stream of income either monthly or annually. For a definite period of time or for a lifetime. It depends on how you want it to be returned to you.

Annuities are a contract between the insurance company and you yourself. The insurance company will pay you a fixed payment to you either in a series of payments or all at a single payment. An annuity can be of two types. They can be either an immediate annuity or deferred annuity. Just like every other thing, annuities to have its good and the bad sides. Here, we are going to look at the good side of the annuity.

Annuities The Good Sides

Low-Cost Annuities

If you are a person who has a very high income and has to pay a lot of taxes, you can opt for the low-cost variable annuities. It is for those people who when retiring, expect that they would be in the lower tax bracket as that have exceeded your 401(k) and other IRA deferrals. The charges of low-cost variable annuities are less than 1% annually. A low-cost variable annuity is also sensible as you can invest a lump sum of money and they will be returned to you as a source of income and if you can invest more money, you can get an extended source of income for more period of time.

Longevity Annuities and charitable annuities

Another good thing about annuities is that you can opt for longevity annuities. Longevity Annuities are those annuities in which you can lock up or invest some of your assets. If you have a feeling that you are likely to outlive your assets, then you can go for longevity annuities. The advantage of this annuity is that you can start to begin a stream of income even when you are in the old age.

Charitable annuities are another good option for annuities. Charitable annuities are a great way to make donations to a charity in the form of tax that can be deducted and you can receive a certain portion of the donation as a stream of income for your life.


Annuities can be of different types and forms. Most of the different types are usually the positives about annuities. Different annuities have their own advantages and disadvantages. But for the basics, I hope that your basics regarding annuity are clear and by now, you must be having a better knowledge of the good sides of annuity and which choosing an annuity is a good idea.

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