Monthly Archives: February 2014

Shake the Hand of the Annuity Provider Offering the Best Annuity Deals!

With annuity rates being depressingly low, those on the verge of investing in an annuity are facing a dilemma – wait for the rates to improve, or choose from one of the annuity deals available now and make the best of it. Keep waiting and hope that you get a better deal, or shake the hand of the annuity provider offering the best deal right now?

Annuity rates depend on a number of complex factors, and according to financial experts, the rates are not set to improve significantly, at least in the short term. However, there could be tiny fluctuations in the rates from time to time. But delaying investing in an annuity may mean that the lost income due to the delay may be far bigger than any gains from small fluctuations in rates.

Even though rates may be low at the moment, there are various types of annuities available on the market, and you can find a product that best suits your needs and offers an income that you are comfortable with. A financial advisor can guide you through all the types of annuities, as well as your own needs and make an informed choice.

Waiting for better annuity deals may prove to be a bad idea on three levels. One – it may mean that you lose out on regular income due to the delay, two – while you are waiting for annuity rates to improve, rates may go even lower, and three – any attractive deals and offers currently available could be withdrawn without any notice. Unnecessarily delaying investing in an annuity in the hopes of better annuity deals may therefore mean that you not only find a better deal but also make a loss in the process.

Popular financial products being withdrawn is not without precedence. The Halifax Retirement Home Plan is a good example of this. The Halifax Retirement Home Plan was a highly popular mortgage that was withdrawn without any notice in August 2011. This was the only flexible interest only equity release plan of its kind at the time and left a lot of people who were interested in it without any other option.

In fact, annuity rates, annuity deals and indeed annuity products can be withdrawn, updated or changed on a day to day basis. Waiting for rates to improve may mean that you not only have to commit at a lower rate in the future, but could also mean that you do not get the specific type of annuity that you wanted in the first place.

Seek an IFA for the Best Annuities Rates

Annuities have quickly become an important part of any financial portfolio, especially when looking toward sustaining financial stability during retirement. While annuities offer the opportunity for stability in finances, they also require a great deal of research and effort in order to choose the right one, including one that offers the best annuity rates.

While consumers can certainly do a great deal of research on their own and independently, there is only so much a lay person can understand about annuities, the best annuities rates, and annuity fees. Once a consumer has determined the kind of annuity they think they would like and they have identified their personal financial needs and the needs of their family, it is time to look into using an independent financial adviser. This can offer a number of benefits. Perhaps most importantly, it can ensure that the consumer is offered the best annuity rates.

Finding the right IFA
Recent research has shown that consumers are even shopping around for the right financial adviser in an attempt to ensure that they are given the best possible annuity rates. Consumers are not only shopping around for the best quotes but they are also looking for the best financial advice. Advisers do not only offer the best annuity rates to their customers, but they are also more equipped to find the annuities that are best for their consumers. They are able to help the consumer understand the process in a way that beginners can actually understand. This information can often be priceless for those consumers that are new to the process.

While choosing the right IFA can mean a much more stable financial future, it does not come without cost. However, paying for the right IFA can also mean paying for peace of mind in the years to come. Finding the best annuities rates can mean settling down in the best possible financial situation.

It is crucial to speak with an adviser to determine the fees associated with investing in an annuity. Financial advisers can get paid several different ways and can often be paid through the consumer somehow, even if indirectly. Most often, an independent financial adviser may only receive a one-time payment in the event that the consumer has purchased an annuity that the IFA helped them to acquire. Regardless, different companies and different advisers may operate under a variety of different fee structures and policies. Finding out the fees incurred by purchasing an annuity can be a consideration when determining which investments to purchase for retirement. An annuity can prove to be a very worthwhile investment for most consumers. However, it should be purchased correctly and with a great deal of research and effort beforehand.