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Annuities For Dummies. Don't Make A Financial Decision Without this!

By Edited May 24, 2014 0 1

Don't Make A Tragic Financial Decision Regarding Annuities.

Annuity For Dummies

Annuities For Dummies is a book written especially for the amateur investor. Whether you presently own such a product or if you have been advised to purchase one the best tool you can have to help you make the right decisions is knowledge.

If you have decided that it is time to began making financial decisions for your retirement you will be faced with making a decision about the possibility of purchasing an annuity. While these can be some of the most misunderstood and improperly used investment instruments it is impossible to escape advertisements or solicitations to purchase or sell annuities.

The basic product in it's simplest terms is an investment contract or policy made between you and an insurance company. However this is where the simplicity ends. You will quickly find a dictionaries worth of terms that you are most likely unfamiliar with.

There is a wide array of annuities available. Their major benefit is tax deferment for the growth of your earnings. This is a feature that is widely advertised and at first glance seems to make these products a good investment. There are Annuities Available For Many Situations.

Make Sure It Is The Proper Investment For You.

Whether you are looking for income growth or savings there will be a policy that fits those needs. While there may be any number of off shoots there are basically six major kinds.

Single premium deferred

For the non-professional investor just seeing this list may be enough to cause confusion and fear. It gets much more complicated the further you investigate and if you do not have a good source of   easily understandable information it would be easy to forget the whole thing or worse let someone else make the decisions for you.

Before you contact a professional financial adviser you would be much better prepared to understand and make use of the advice you receive if you first do some basic research. The book “Annuities For Dummies”, from the Dummy series and written by Kerry Pecther, is one of the better sources for information geared towards the amateur investor.

This book does an excellent job of explaining the technical terms involved when reviewing annuities. It contains much more information than you will probably need to get started but will be an excellent resource when you need further information about different types of annuities or advice about which one might be used for a particular situation.

The book is divided into 21 chapters covering everything from Annuities, A Blend of Insurance and Investment in chapter 1 to chapter 21, Ten Web Sources for More Annuity Information. You will find information and advice about selling or converting as well as much information about tax considerations. The book is well indexed both in the chapter index and the index in the rear of the book making it a simple chore to find exactly the information you are looking for.

There are 3 Appendixes.

A: Key Research Sources
B: Protection From Insurer Default
C: General Rule for Pensions and Annuities

An 8 page glossary  covers many of the strange terms you should be familiar with before contacting you financial adviser.

Receive The Best Advice Possible Before Buying Or Selling

The best advice you can receive is do not make any financial decisions especially about annuities without seeking help from a trusted financial adviser. You will be able to better understand the advice you receive if you spend a little time reading portions of “Annuities For Dummies” first. It is an inexpensive book and readily available.



Jan 1, 2013 7:49am
Purchasing an annuity is a big decision. It often means locking up capital for several years! I agree that people should educate themselves. Of course, consumers that do some homework first are no dummies!
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  1. "Compound Interest And Annuity Tables." U.S.D.A.. 30/October/2011 <Web >

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