Fixed Annuities Rates Ensure a Steady Source of Income

Annuities refer to contracts that insurance companies sell to people ensuring them a steady stream of income in retirement. Annuities are variable when the investment of annuity purchasers' money is done in the stock market and the amount of return is not certain or guaranteed. Among the available annuities rates, fixed rate is also there. Annuities with a fixed rate are invested to yield return at a fixed rate for a fixed period of time.

If you are approaching the retirement age, to say clearly you are two or three years away from the retirement stage, you should look for the annuities rates which are not only best but also give access to the invested money. You should have a clear understanding of the rates of income from retirement annuities. In the current market, annuity companies are giving 3% rate of interest on annuities for a term of five years. The return is good considering the present economic scenario. You can withdraw the accumulated interest only during the five year period.

If you make an investment of $100,000 and retire in 2 years, you can withdraw only $6000 in the first year and $3000 for next three years. If an annuity guarantees 2.5% and allows you to withdraw up to 10% after a year of retirement, you can take out $10,500 annually in the 1st year of retirement and $9,733 in the 2nd year. The second option gives easier access to the invested money than the first one. While selecting the best annuities rates, take these options into consideration.

Make sure checking the credit rating of insurance companies, before you invest in annuities with fixed rates. Though annuities with fixed rates are going well in the current market, a beforehand homework pays off to drive you down the right path. Fixed annuities rates guarantee return that is sure, though small.
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