Why Invest in Annuities?

Series Summary

An annuity contract is a financial product, typically offered by a financial institution, that may accumulate value and take a current value and pay it out over a period of years. These contracts are regulated by various jurisdictions and this has led to the term being focused on different features in different parts of the world. An annuity is an insurance product; annuities are typically issued by the same companies that issue life insurance policies, and the risks undertaken by the issuer are fundamentally the same for both products. That is, the insurance company bets on the life expectancy of the customer. In this free video series, a registered financial consultant explains how annuities work, what the different types of annuities are, and how to get the most out of investing in annuities. Some of the topics included are fixed annuities, tax sheltered annuities, variable annuities and annuity companies. With this financial planning advice, the well-prepared will be able to ease comfortably into retirement.

Video Transcript

"Hello, this financial adviser Patrick Munro telling you today about how to invest in annuities. Annuities are the ultimate safe money vehicle for folks to invest their money in. And what happens is you're placing your money, usually through a financial adviser, through, putting it in to an insurance company. An insurance company will invest that money under government guidelines so that you can not lose principle. Each state has a state guarantee association and what they are able to do is make sure that you and your money is safe going forward. Because the idea is to put money into the annuity while you're young and have it there for your future. When you stop working, you can turn on an income stream because you'll no longer have an income from your work activity, you'll be retired. The opposite of that is you put it in the stock market and you lose the interest, there may be a chance that you have to delay retirement. So annuities, of course, are the best vehicle for that type of accumulation going forward and having a safe, secure retirement. That's why you should invest in annuities."