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There’s more than one way to save money for retirement. Annuities should not be discounted when saving for retirement. An annuity is an insurance contract for seniors that is an income-guaranteed stream that can be paid in a lump sum, in a fixed monthly income, longevity annuity, or flexible income payment plan.

Investment experts say that those who invest in annuities will not run out of money. Financial companies know that seniors need money to live for decades and pay for all expenses including medical. Annuities are one of many investment tools available to give seniors enough money to manage health and life spans.

Over the years, people have had sharp criticism for annuities. Annuities have a liquid design that is associated with withdrawal penalties and associated fees. On the plus side, annuities are similar to the 401k and the IRA. Annuities are paid out once a month, quarterly, weekly, or yearly depending on what the investor agrees to. The annuity is divided up to make sure seniors never run out of money. The financial institution can make deposits directly into the savings account. The annuity interest rates are higher than having a CD.

Large banks such as Fidelity and investment brokerages like Merrill Lynch and Vanguard well different types of annuities for senior citizens’ special needs. Annuities are available all over the country. Annuities have no cap and can have between 12 and 15 percent interest rates on average.

Before buying annuities, one must be aware of hidden fees. Not all annuities matured at the same rate. One must always check the interest rates for the best rate. Before getting an annuity, one must look over the annuity report of over a thousand different kinds of annuities from at least two of the largest brokerage houses. A person must first all savings with one bank. One must invest at a low rate that yields a high-interest rate.

There are questions and answers to be aware of when getting an annuity. Annuities are not for everyone. The investment brokerage agent can tell you if it’s OK to buy an annuity in a bear market if annuities are risk-free and a good alternative to stocks, etc.