Do you want any financial protection for you and your family? Annuities are top most solutions to face all these problems. Annuities make your retirement the most pleasant part of your life and you can lead a relaxed life without depending on others. And when it comes to fixed annuities, they offer tax-deferred guaranteed return for a certain period of time and provide assurance to repay the principal amount. Fixed annuities are much preferred by investors who want to avoid equity market fluctuations.

"A Fixed Annuity is a personal retirement account in which the earnings are based on a fixed rate set by the insurance company. Fixed annuities are susceptible to inflation risk due to the fact that there is no adjustment provided for runaway inflation."

The most attractive feature of fixed annuities is that annuitants can receive an assured rate of interest for a definite period of time, such as 1, 2 or 5 years. At the end of this specific period a new interest rate is determined for the subsequent period. Safety of principal is another remarkable feature of fixed annuities. The security of principal of the fixed annuities is directly linked to fiscal soundness of the insurance company so it is vital to choose a licensed and reputed company.

Mainly there are two types of fixed annuities-Immediate and deferred annuities. It is beneficial to purchase deferred annuities beFor many years of retirement. Deferred annuities let you to receive tax-defer income payments until a certain period of time. You have to pay tax only when you start withdrawing money from your annuity fund. Deferred annuities are not good options if you need funds for current financial needs. Because, if you take back your funds beFor the age of 59½, you have to pay 10% penalty in addition to ordinary income tax. Fully guaranteed, multi-year guaranteed, traditional fixed and indexed annuities are types deferred annuities.

It is good to purchase immediate annuity just few years beFor your retirement. Immediate annuities promise to make income payments immediately. Your income payments you get from fixed immediate annuities are calculated on the basis of your investment, age and the market interest rate at the time of purchase. While purchasing the immediate annuities it is important to give proper consideration to inflation in order to keep pace with such factor. You also have an option to convert your immediate annuity into deferred annuity. Both deferred and immediate annuities can be fixed or variable.

For more information regarding annuities, please call the AnnuityForLife.com experts toll-free at 1-888-261-6237