Like all substantial investments, buying annuities can be somewhat complicated, especially for the novice investor. Therefore, it is wise to seek professional advice before coming to a final decision. Reputable brokers will always send you a buyer's prospective, advising you to read and understand it thoroughly before making an investment.
Here are a few tips that might help you to choose high interest annuity plan:
* Thoroughly review of all your previous as well as current saving plans, pension plans, and retirement plans, etc. to determine what has worked well for you. This can help you better determine whether you actually need an annuity.
* Other factors such as age and overall net worth should also be considered in this process.
* Determine how long you plan to can keep your annuity in order to avoid extra charges or penalties for early withdrawal. Penalties may also be assessed even if you exchange one annuity for another with the same banking or brokerage firm.
* If you are still open to investing in annuities, decide how much of a risk exposure you are willing to take. High interest annuities carry a higher financial risk than other types of annuities, such as fixed rate annuities, and are usually at a variable rate.
* Fixed rate annuities carry less risk and surprise. The return remains the same for the life of the annuity, unless otherwise stated in the prospectus.
The reputation of the brokerage or banking with which you will be investing is also a key factor in your investment decision. If you are happy with your present financial consultant, it is probably best to let him or her handle your first annuity purchase. However, make sure that he or she is experienced in handling the trading of annuities. Not all financial consultants are experts in all investment instruments, but all of them want to make money, which they do whenever they handle a trade for you - regardless of whether you made or lost money in the transaction.
If your investments are made primarily through a pension fund or employer fund, you are probably going to have to do more extensive research on your own, because your company's administrator is not an investment counselor. He or she administers your company's money and investments - not yours. Think of them as you do your company's human resources personnel. They can distribute papers to you, answer basic questions about your basic benefits, but are limited in their capacity to answer specific benefit questions - such as provider information. Your health insurance carrier keeps track of benefit status and providers - not your H.R. representative.
Therefore, before you buy high interest annuities, or any other kind of investment, be sure that you understand the pros and cons - the returns and risks of the investment. If the language of investing is beyond your comfort level, it is advisable to consult with a family member or close friend who has had success in making such investments in the past.
Written by, Brenne Meirowitz, B.A., M.S., M.A. This article, Tips for Buying a High Interest Annuity was written while researching information about Annuity and Settlements.
Article Source: http://EzineArticles.com/?expert=Brenne_Meirowitz
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