|
Investment products issued by insurance companies that offer retirment rates of return are annuities. An annuity is a contract between an investor and the insurance company, where the person contributes money into an account and the insurance company promises to offer a payout Fixed or Variable to the investor when the retirement payout begins.
Annuities can provide an investor with insurance protection and the ability to earn money fron the investments made in the annuity over the contribution period, which is usually over many years. The rate of return on these retirement investments are based on the performance of the investments themselves, the contribution amounts made into the account and the number of years the investments have had a chance to grow.
Annuity Payout
Payouts on an annuity are based on a fixed number of annuity units that are owned in the account. The value of these units will fluctuate. The payment amount will either be fixed or variable, depending on the type of annuity you have chosen to invest in.
For people not in a corporate retirement plan or who do not have a defined benefit plan at their job, an annuity can offer investors a chance to earn money and get insurance protection for their retirement.
Copyright  2006 American Investment Training, Inc.
|
