Investment Annuities

     What are annuities you ask, well, they are an investment where you pay into it until you retire. Then once you are retired, you receive money back from it however there are some differences from other investments where this holds true. There are many benefits to them but there is also a downside you should know about., while you are putting money into them, you do not pay taxes on the money until you start to withdrawal from it.

     Annuities are quit flexible too, allowing bigger chunk payments or set monthly/annual payments. There are also generally no limits on them such as with your 401K as well as a guarantee of the amount that is paid into it, so even if there are market ups or downs, you still receive a guaranteed amount as set out in the original agreement.
     So what is the downside to these amazing sounding investments? Expensive fees, and often the gains are taxed at a slightly higher rate than other investments such as mutual funds or your 401k. If they are going to give you so many benefits, there obviously has to be a downside to them. However one should look into them if they sound appealing to you. Because as long as you understand them they can really benefit ones situation.

But how does this all work?
Fact: Your creditors end up subsidizing all or a large part of most debt consolidation services. What you ask? Well before you say this sounds too good to be true, keep in mind that your creditors are not lowering your interest rate and making it easier for you to make smaller payments out of the goodness of their hearts. They realize if they don't help you out a little you may file bankruptcy and they will never recieve a penny of what you owe them!

Disclaimer: This site is not , nor should it be taken to be, legal, financial or other professional advice. It merely provides a generalized guidance and generalized information only. Consult a financial advisor or an attorney to discuss any legal or financial issues involved with credit and debt decisions.