If you have been considering annuities, then you must have read a lot about annuity rates, lump sums, fixed annuities and variable annuities. However, since most of these terms are not really that familiar to individuals outside the financial world, we just might have a teensy bitsy trouble making sense of everything. If this is the case then it is always best to search for the layman terms for the terms and phrases that confuse you. For instance, a lump sum refers to a certain amount of money that will be paid in one full payment. Regular payments, on the other hand, refer to the routine payments that are made on a regular basis. It is important that you understand the terms that involve an annuity before you go asking financial experts for the current annuity rates in the market. After all, you are seeing the possibility of getting an annuity and not of getting confused by unfamiliar words.
Two of the most important factors in annuities are timing and the best annuity rates. If neither is right, then you will not probably be able to reap the maximum benefits of your annuity. Timing is crucial because the financial world is not always peaches and cream. Sometimes, rates go down or the economy goes down and the values of annuities and other investments go down the drain. Instead of receiving a lump sum of one hundred thousand, you just might get 75 % of the annuity value. So, before you make any rash decisions, consult a financial or annuity expert first. The second factor is the annuity rate. Since your entire investment is riding on your annuity rates, it is crucial to get the best annuity rates possible. So, treat your annuity like an investment. Do your research and tread carefully. After all, no one was ever able to make a wise decision by rushing everything.
If you are considering getting an annuity pension, then the best first step for you to take would be to do some research. By researching on the most common types, terms and factors that regard annuities, you will be able to gain insight on which is the best option for you to take. Next, once you have an idea on what the different options are out there for you, it is wise to consult a financial expert. Talk to the expert about your preferences and about the annuity that he or she thinks is best for you. Weigh your preference against the preference of the advisor and choose what is best. Also, let the financial advisor guide you towards the companies which offer the best annuity rates in your area. After all, you have a lot riding on the annuity rate.