Things to Consider in Annuity Plans in Washington
Reader’s Question:
I will be availing of an early retirement plan in the office and will put up a small business instead in Seattle Washington WA. But I don’t want to put all my retirement money into business – I’m only 45 I can still work! I want to buy an annuity plan instead. What are the basic things I should consider?
Jasmine
Seattle, WA
Jasmine, if you will always practice the sensibility and intellect you have just displayed, you will certainly do good in any business you put up. I hope you allow me to be the first to wish you good luck.
An annuity plan is one of the best retirement vehicles around. Or in your case, proper retirement, I should say. Around four factors should be considered in buying annuity. But first let me say that this page provides multiple free quotes if you only enter your Seattle Washington WA zip code on the blank space.
The first factor for consideration is the premiums, or payment of premiums. You can do this in one huge amount – which may be applicable to your case since you will be coming into a significant amount of money soon.
Then there is the timing of payout which can be immediate or deferred. Immediate simply means that you start receiving payments as soon as you have completed paying the premiums. You can imagine that this will not probably have a huge interest component as opposed to deferred which specifies that the payment will be done after X years.
Next thing for consideration is the investment type, which will ultimately determine the interests of your money. This can be fixed or variable, and each will have its own strengths and weaknesses. For example fixed interests will be stable but will be low-yielding; the opposite is completely true for variable insurance.
Lastly, you might also want to consider liquidity options, which allows you to withdraw from your existing account (from interest mostly) without penalty.