What Is Better: Annuities VS CDs

There are some of you who are trying to get ready to retire. With that being said, you want to be sure that you can get the best investments. There are some of you who need to know which is better. This is the debate of annuities vs CDs.

Now, there are some people who will find that annuities are not for them. CDs might be better for them in the long run. If you are wondering if you are one of these people, we have some things for you to consider. Here are the things to ask yourself if you are the type that should be getting the annuities.

The first way to know that an annuity is not for you would be if you are looking to get the money in one or two years. This is to be used when you retire later down the road. We do mean way later.

The other thing would be to consider if you need all the principal money back. If you do, then you would qualify for the annuity. However, you also want to watch that moneyGrows. You will find that this is an investment that is more long term. It will outlast the CD. The biggest thing is that with the annuity you get the safety and the security that you need. You can get growth as well.

You will find that when you go with CDs you do not run all the risks. They are savings plans. They are not considered investments. The other thing about CDs that you might not like is that they do not get as high returns. The other thing about this that you have to be careful with is that if you go to cash them before they are mature you can get some pretty high fees.

Now, annuities have their downsides as well. The biggest thing is that you put your money into these companies. You hope they do well which is why you should look at their financial report and see where they stand before you choose a company. However, if they go down then you will go under and lose all the money you put into it. That is why you have to think about the risk that you are taking.

The last thing that you will find is that you really have to consider how much risk you would like to take. Both of these can help you to put money aside that can be used for retirement as we all want money for that grand time. After working hard for years, you want to retire and not have to figure how you are going to pay for things. However, you have to think about how much money you can invest and what happens if they fold.

When you think about this, you have thought about both sides. These are the things you should know. There are advantages and disadvantages of both. So, here is the concept of annuities vs. CDs. Find out which one will benefit you before you start investing.

Visit http://www.annuitycampus.com for more Annuity and Life Insurance Tips and Tricks.

Call Robert Eldridge directly at 800-643-7544.

Robert Eldridge holds over a decade of experience as a multiline agent in multiple states and currently serves on the membership council of the National Association of Insurance and Financial Advisors

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