Annuities and annuity investments are a wise way to prepare for your future whether you are preparing for retirement or simply dividing a large sum of received money into smaller streams of monthly income to utilize during your entire life’s span. Immediate payments or deferred payments can be secured to benefit your special needs. The annuity investment will be designed based on your desires and requests. There are a few basic principles to know when you are considering making an annuity investment.

Annuities are investments that are sold primarily by an insurance company. These investments or annuities are available in two basic properties, immediate or deferred; an annuity with an immediate payment begins payment to the investor immediately while a deferred investment receives payments at a later date. Annuities are available with a guaranteed, fixed return or a variable return.

Annuities are investments that secure your entire lifetime with a stream of income or that establish a stream of income in your later years of life. Annuities also establish a steady stream of income for heirs and allow you to secure how your descendants will receive the wealth that you desire them to receive from you.

With a fixed annuity you make an upfront payment in exchange for a fixed monthly amounts paid to you or your heirs for a certain period of time. These payments can be deferred to the date of your choice. Annuities can be used as tax-deferred investments and can be also used to convert a large amount of money into smaller increments of stream income.

When selecting annuity payments, consider the length of time that you would like payments to be made to your heirs or to yourself. For example, a fixed period of 10 year payments can be made to yourself or your heirs. The payments can be the sum of principal and interest or a deferred payment which will allow the investment to grow with taxes deferred on that growth.

Creating an annuity plan whether immediate or deferred is an important decision. This very important financial decision will need to be made with the wisdom and help of a company with many years of experience and knowledge that will be able to assist you in making the best decision for you.

Mr. Hemke is a twenty-year securities and insurance industry veteran. He founded BuyaPension.com, an online sales site for individuals looking to research and purchase single premium immediate annuities.

BuyAPension.com was formed in 2008 as an annuity company to serve the ever-expanding retirement income needs of Baby Boomers and their parents. Planning for income in retirement presents many challenges and investment products are often complex, therefore, it is our goal to provide simple solutions and explain these solutions to our clients in a straightforward, understandable fashion.