Boca Raton Bankruptcy Lawyer

All About Annuities

Annuities are a type of financial retirement security plan involving the tax-deferred accumulation of capital periodically earned on an investment. Annuities can come in a broad range of forms, but the factor that unites them is the guarantee of continuous payment of these dividends upon retirement. However, continuous payment can mean either for a specified period of time (five or ten years), or until the death of the policy holder.

Most people set up an annuity fund through an insurance company with the help of a financial firm. Payment can take the form of either periodical investments or a lump-sum deposit. One of the most common forms of annuities is the retirement pension, which involves putting away money in a company with the promise that it will be returned incrementally after the individual retires.

Fixed Versus Variable

Like all investments, annuities involve a certain amount of tradeoff in terms of risk. A fixed annuity is a safer bet, as the amount you receive in return is consistent. In contrast, the outcome of variable annuities fluctuates in relation to the rises and falls in the market. Therefore, during “boom” times, you stand to receive more, but the opposite is true as well. In the current economic climate, many variable annuities are suffering. However, this may result in better deals for those willing to risk that things will improve within their lifetimes.

Contact Us

If your retirement plan has been seriously affected by the recent financial crisis, you owe it to yourself to look into the potential advantages of bankruptcy. The Boca Raton bankruptcy lawyers of Eric N. Klein and Associates, P.A. offer years of experience helping people in difficult circumstances such as yours. Contact 561-353-2300 to schedule a free consultation.