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Annuity – This is your future money

As every year, we started to think about a life where you do not have to drill in the 9-to-5 clock. Although the appearance of things that time can not never. The Government continues to push back the retirement age. At the rate things are going we may have to work until we are 100 years old.

The majority of people still live check to check and as U.S. companies. UU. so many have sent their jobs well paid to other countries, many Americans are having to do two jobs, just to pay the same bills that were once able to pay with one. But for people who may have some money to invest in their future, there are some things that can be done.

One of those things is an annuity. An annuity is an investment that returns a certain amount of income for a certain period of time. This form of investment is not new. Annuities can be traced to the Romans. Roman citizens would make a payment for the only time in something called the annua and this was promised that they would receive arrears, in the course of their lives. Even the middle ages had an annuity, called tontines. The tontines paid an income for life and if one of the holders of policies of dying, then payments would be shared with the survivors.

Annuities could be your best investment

Annuities do not hit America until the 18th century. A company in Pennsylvania, in 1759, was created to benefit the Ministers and their families. It was not until 1912 that the Americans could buy annuities as individuals. Annuities really became popular in the 1930’s. On the heels of the great depression, people knew about the financial markets. Many people bought annuities from insurance companies during this time, because the insurance companies felt they remained stable and he would be at lathe to pay them.

In the United States. UU., as leases are regulated by each State individually. What this means is that a contract that may be valid in a State, may not be valid in another. Insurance companies are the only ones authorized to sell leases in the United States. UU… There are two types of leases, the immediate and postponed it the. The immediate annuity will guarantee the payment of a certain number of years or for the life of the insured. The deferred annuity is allowed to grow and earn interest, without being taxed. Of course, when the policyholder wants to cash their annuity, which will be taxed.

It has been said many times that the majority of Americans do not have $250 in the Bank. When you consider that most of people do the work and that they have most likely is that it works for years, have less than $250 it does not speak well of your financial situation. The Government has emphasized the benefits of saving for years. Probably because know how bad state of the Social security systemis in reality, and can have a group of American retirees who do not return some of the money they paid in, a throughout their working lives. It is a big dilemma for the poor. Do you try to save for tomorrow, or pay the rent?