An annuity is a contract you sign with an insurance company in which you invest either a lump sum or make periodic payments. In return, the insurance company agrees to pay you periodic amounts at the end of the pre-established period or immediately. An annuity can be either a fixed one or a variable one.



A fixed annuity consists of a certain minimum interest rate agreed upon in the contract and you may choose to receive payments for a certain number of years or for as long as you and your wife live. There are some stipulations, of course, which limit the amount you may withdraw during the contract period and the penalties imposed in case you decide to cancel the agreement. There is, however in most cases a death benefit, which will be paid to the surviving spouse and consists in repaying the amount invested. Check also the tax benefits with your accountant.

In a variable annuity you choose to invest in a variety of financial options, generally in mutual funds. Your return will of course depend on the behavior of financial markets. Find out the conditions and the fees involved with your provider before deciding. Companies like Legal and General ? amongst other big name companies ? make their insurance policies available to browse online, including life insurance quotes.

An annuity is a good choice for either older people who wish to receive a monthly check once they reach a certain age, or for young parents setting up a university fund for their children. The variable annuity may offer a better return because financial markets, over the long run, have proved to be excellent investments. But of course there is a higher risk than in a fixed annuity.

Experts agree that real estate is - in the long run - the best investment, but only if you choose the location very carefully. If you have a small capital and are wondering where to invest it, buying an existing house or a piece of land may well prove to be highly beneficial in a few years. It is difficult to determine when housing prices will reach bottom and waiting for the ?right? time may prove costly. With the help of the right agent, selling your house ? may certainly be a time-consuming process - but with patience and planning, it should find it's place in the consumer market.