What Annuity – Choosing what annuity is best for You


What annuity is best for You?

what annuityAbout Annuities: Making Smart Financial Investments for the Future Today

One of the more popular forms of investments today is annuities, which basically are insurance products that are designed to pay out income in steady streams. Annuities are ideal for those people who are planning for their retirement.

If you are looking to enter retirement when you hit a certain age, but still want to receive regular income, then you might want to look into what annuity is and what sort of benefits you stand to gain by purchasing an annuity. Depending on the type of annuity that you purchase, you can essentially assure yourself that you will have some sort of financial fallback when you do eventually enter retirement.

What Annuity do you need to choose?

If you know what annuity is then you should also know that your initial investment comes back to you when the annuity makes a payment or a series of payments to you. In most cases, the amount of money that the annuity pays you can be given every month, every quarter, every year, or even in the form of a single lump sum payment.

what annuityFactors such as the amount of time you are expected to continue receiving regular payments from the annuity, and the frequency by which the payments are given to you determine how big or how small a payment you receive. Additionally, the amount that you receive can also depend heavily on what annuity type you decide to purchase. A fixed annuity is a type of annuity that guarantees regular payouts.

Fixed annuities do not rely on any underlying investments in order to determine the amount of payment that you receive. Instead, fixed annuities work very much like certificates of deposit, where you receive a guaranteed amount of money for a specific period of time.

On the other hand, variable annuities are essentially a tax deferred retirement vehicle that gives you the option to choose from a selection of investments. The payments that you receive from variable annuities, unlike those from fixed annuities, vary with how your annuity’s underlying investments perform in the market. Nevertheless, regardless of what annuity type you go for, annuities are a great way to financially prepare for your future.

Deciding What Annuity type suits you

Knowing what annuity type to purchase usually requires careful research. Aside from being either fixed or variable, annuities can also be categorized as either deferred or immediate. Deferred annuities are annuities that make use of investment opportunities. Deferred annuities let you take out withdrawals after a set amount of time, while immediate annuities allow you to receive payments soon after your initial investment is made.

what annuityWhile deferred annuities do not pay out to you immediately, you do get the benefit of having your money used in various investment opportunities, opening up the possibility of you receiving a higher payout. Immediate annuities meanwhile are ideal for people who are nearing their retirement age, and no longer have the time to have their money used as an investment. Careful research regarding what annuity type suits you best can increase your chances of maximizing your annuity’s potential for growth. For more useful articles on annuity please browse through http://www.whatannuity.com/what-annuity/ .

How Is Your Tax Money Spent By The Government?


A lot of Americans take pride in paying their taxes. After all, in a democracy, it is the duty of every able citizen to pay the taxes so that the government can use the tax money for providing essential services. Even though we pay our taxes regularly, we seldom wonder about the way in which this tax money is spent by the government.

It seems like most of the people take the facilities and services provided by the government for granted. As an educated citizen you must always keep a track of how the government spends the tax money. This article will tell you how and where the dollars paid by you in the form of taxes are being spent by the government.

  • Armed forces and other defense related expenditures:

Everyone knows that the United States maintains the most advanced and able armed forces in the world. Our armed forces are not just better trained but also use better and advanced weaponry as compared to the armed forces of other nations. But establishing and maintaining a large army, navy and air force requires a substantial funding.

For this reason 27 percent of every dollar that you pay in taxes is spent on armed forces. Out of this 27 percent, a significant portion is spent on research and development of new and more advanced weapons. The rest is spent on maintaining the existing fleets and troops.

  • Health programmers:

The new Affordable Care Act became a hit because of one reason, a lot of Americans were not able to afford health insurance and this Act gave them a chance to have one. It’s obvious that the government has an obligation to provide good healthcare facilities to all those who cannot afford to buy a health insurance. For this reason, 22.7 percent of every dollar that you pay in taxes is spent on government sponsored health programmers like Medicare and Medicaid.

  • Interest on national debt:

13.8 percent of the total money collected in the form of taxes is used for paying interest on U.S. Debt. It is well known that the U.S. national debt has witnessed huge growth in the recent years, especially after the recession set in and toppled the global economy.

* Unemployment programmers:

Lately all of the countries have witnessed a growth in unemployment rates. About 9.8 percent of the total tax money is used in supporting the unemployment and job oriented programmes. It also includes the expenditure incurred in government sponsored career training programmes. Out of this 9.8 percent, some money is also used in assisting the families that are struggling to make the ends meet.

  • Administrative costs:

About 4.5 percent of the total tax money is spent on running and maintaining the government machinery. It includes the salaries of the civil servants and other government employees and the benefits that they receive. All the expenses related to running and maintaining government agencies like FBI and Immigration Services are also paid from this 4.5 percent.

About 2 percent of the total money collected in the form of taxes is spent on education.

Paul Ritz is an associate at National Debt Relief Group. Consumers can take advantage of a free debt consolidation session to discover their options for debt relief with no obligation.