Securing Returns From Fixed Term Annuities

Annuities Securing ReturnsBy Toma Franklin, Staff Writer

Profitable assets which offer fixed term annuities are a popular vehicle for investments. Faced with a volatile economy, one needs to think not only about securing your future with investments, but also investing in such a way that the investments themselves are secure.

Investing in assets which earn you a profit inevitably involves a certain amount of risk. Even if you do not directly dabble in the markets, any investment you make is ultimately subject to market forces, since the company, fund manager or asset into which you invest will no doubt be a part of the market. The exact amount and nature of the risk you take on, or are liable for, will depend on the type of investment and the terms and conditions set forth in your contract. The trick here is to make an investment which guarantees at least minimum pre-specified returns, minimizes your share of the risk and maximizes cash value.

Today, we live in a highly fluid market based economy, with periodic and sharp spikes up and down. The market crashed heavily in 1999 and washed away the investments of millions of people who were suddenly left without a safety net for the future. After this debacle, more and more people have been seeking out fixed term annuities as a form of secure investment, but without the additional cost.

An immediate fixed term annuity is considered to be a safe and reliable investment vehicle for retirement plans, assuring returns at least equivalent to the account value plus minimal interest. However, there are a variety of such annuities available, and each type has its own advantages and limitations. One needs to know the specifics of each fixed term annuity, in order to be able to match it with your requirements and resources.

Fixed term annuities are valid for a specified period of time. You need to study your requirements and select a period for the annuity which corresponds to your needs. Other forms of investments can generally be withdrawn or handed only after completion of the specified period or by a pre-specified triggering event. Investing in fixed term immediate annuities eliminate this waiting period. Almost all annuities offer safety and security. Therefore, your focus, when selecting a fixed term annuity, should be selecting an investment which maximizes your returns.

All said and done, an immediate fixed term annuity is a safe, secure and profitable investment and depending on your knowledge of the available options and your resources, you can very easily secure your future without undertaking any significant risks.