Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

What exactly is this 'annuity' I keep hearing about? And, should I get one?

Tags: money
Asked by WALDA UMLAD, 21 May '11 10:56 am
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (2)

 
1.

Annuity is a financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years. There are a lot of good and bad features of annuities. First of all there are tremendous tax benefits for investing in annuities. Specifically the money you invest in an annuity grows tax deferred until you eventually start your withdrawals.
Answered by bailey williams, 22 May '11 12:19 pm

 
  
Report abuse
Useful
 (1)
Not Useful
 (0)
Your vote on this answer has already been received
2.

Annuity is a fixed amount of money paid after maturity which coincides with our retirement. The idea is that it ensures us a fixed sum of money for our living expenses after we retire...everyone will need a different amount depending on their lifestyle....its part of retirement planning. yes everyone needs it but most people are ignorant about it.
Answered by Kuldeep Khatau, 21 May '11 11:00 am

 
  
Report abuse
Useful
 (2)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining