Investment Opportunity Assignment Help on Annuities Pros and Cons of Annuities
There are lots of pros and cons of annuities for the investment purpose. The benefits of annuities related to the lifelong
income for the retirement people. People, who prefer to earn fixed income after retirement, the annuity provides the best investment option to them. Annuity also protects the life after retirement because it offers the social security and pension to the people in limited amount. Annuity is also beneficial for the investor to protect assets from inflation. Most of the annuities are also tax deferred that attracts the investors to invest on the annuities rather than the other instruments of investment (Lustig, 2011). For example, investment in insurance companies’ fixed annuity contracts is beneficial for the investor in order to generate steady income for the future. These contracts are also helpful for the investor to reduce the risks from portfolio and also provide diversification (Sander, 2010). The disadvantages of annuities are related that this have limited growth in the future that creates problems for the investors in invest in annuities. Annuities also do not have high price appreciation in the market that limit the investor to invest in the annuities. Annuity also has the low liquidity that creates the problems for the investors to invest the money. One of the disadvantages is also related that the annuities have long time period to mature. It creates the problems for the investors in emergency period to cash the annuity (Garrett & Garrett Planning Network, 2009).
Use of Annuity for Balancing Portfolio Annuities are a better option in order to balance the investment. In America, most of the retired person prefers to invest in 401(K) plan in order to manage their portfolio and to gain steady income in their life. It is a better alternative to investment for the people rather than the other instruments of investment. Investment in 401(K) plan provides social security and pensions to the retired people. This pan also provides the benefits to the people in terms of income and death benefits that help the people in receiving minimum income or contract value under the certain conditions or in the down market (Gale, 2009). Through the help of annuities our case study assignment help experts said than atinvestor gets income in specific intervals that also decrease the risk and improve the financial condition. With the use of 401(K) plan, Americans improve and maintain the same standards of living after the retirement. It is because this annuity plan bridges the gaps that come after the retirements and provide the social security and pension (Rowland, 2010).
References Gale, W. G. (2009). Automatic: Changing the Way America Saves. USA: Brookings Institution Press. Garrett, S. & Garrett Planning Network (2009). 76 Tips For Investing in an Uncertain Economy For Canadians For Dummies. USA: John Wiley & Sons. Lustig, M. (2011). Annuity Training. USA: Real Estate License Services. Rowland, M. (2010). The New Commonsense Guide to Your 401(k): Rebuilding Your Portfolio from the Bottom Up. USA: John Wiley & Sons. Sander, P. J. (2010). The 250 Personal Finance Questions Everyone Should Ask. USA: Adams Media. Avail 100% original business assignment help with us.We ensure you that your business assignment help content would be authentic, original and according the assignment guidelines. So, hurry up and please e-mail us your any assignment help at firstname.lastname@example.org