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Retirement

Avoid Market Chaos with Annuities

July 22, 2008

By Richard Band, Editor, Profitable Investing

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Richard Band

Richard Band

As editor of Profitable Investing, Richard E. Band is the newsletter world's #1 authority on investing for low-risk growth. His flagship Total Return Portfolio has tripled in value since its inception in 1990, while taking far less risk than the popular stock market index funds.

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Can I be honest with you?

There's no telling exactly how long our current "unsettled times" will last. I'm hoping they'll pass quickly.

In the midst of this chaos I realize that security looms every bit as important to your financial future as growth does.

In order to ensure that you're investments are well-protected, I encourage you to take a second look at an old investment tool that, after falling out of favor in the past few years, may be on the verge of a comeback.

I'm talking about annuities.

Whether you invest in fixed annuities or variable annuities, these investment tools can save on taxes, a key benefit if tax rates go up under a new presidency, while providing certain valuable guarantees.

They're an investment tool that I recommend to my Profitable Investing subscribers, which have helped to keep their portfolios thriving time and time again.

How Do Annuities Work?

On my Profitable Investing website I like to provide a glossary which helps to explain various financing terms that I often use.

It should come as no surprise that annuities are at the top of the list (it does start with an 'A' after all).

So what is an annuity?

Well, to quote myself, annuities are, "Financial products sold by insurance companies that are designed to accept and grow funds from an individual and then, upon annuitization, give back a stream of payments to the investor." These investments can be both fixed and variable annuities depending on what works best for your investments.

Sounds good right?

My favorite part about investing in an annuity comes when…