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Return To Annuity Article Archive   Search the Article Archives Annuity Buyer By Vivek Sharma Annuity is a retirement planning tool, which has got two phases. First the accumulation phase and second the annuitization phase. These are the two primes and important phases prevailing in the annuity. In the accumulation phase you deposit your money to an insurance company over a period of time. That amount can also be in lump sum and in return you get the rate of return whereas in the annuitization phase you withdraw the regular payment until you die. This withdrawing can be either monthly or annually depending upon the contract you sign. The exact annuity buyer is of either 55 years of age or even older. This is generally popular in older people as young ones find it not profit reaping and credible. Annuity buyer is the person who has already added maximum amount to his current tax-deferred plan. Broadly speaking there are three types of annuity available in the market for the buyers. The first one is fixed annuity in which the buyer always get the fixed amount from the insurance company. The biggest USP for this annuity buyer is that it involves no risk but the flip side is that you are deprived of any further gains when the stock market is at its best. The second type of annuity available for the buyer is variable annuity. In this your annuity is divided into various sub-accounts and each sub-account having its own risk factor. But this annuity provides gains to the buyer when your investment performs exceptionally well. But the downside is that you can loose money if your investment fails. So it is advisable for this annuity buyer to read the offered document carefully. The third annuity a buyer can go for is the fixed-indexed annuity. In this buyers annuity or money is fixed in an account he earns the profit on the basis of its investments performance at the stock index. Annuity buyer must know that while surrendering your annuity to the company they tend to charge certain amount, which can lead to some loss. So it is wise for annuity buyer to go in for detailed market research and find the best annuity available in the market. About the Author: The author is budding web content writer and also experienced in writing quality content for various websites. You can view his blog for more information. Annuity Advice

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