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People looking for security in retirement may want to consider annuitiesPosted On Wed, September 8, 2010
It's not uncommon for people to want financial security in old age. With the stock market still volatile, it's hard for some to determine where they should focus on investing.
A survey by Allianz Life Insurance Company of North America of more than 3,200 people found 80 percent of respondents wanted an investment vehicle promising 4 percent return without losing value over a potential 8 percent return with potential value loss.
An annuity can be a solid investment for some people, but more than half of those surveyed between the ages of 44 and 75 said they didn't like the product. Allianz Life president and CEO Gary Bhojwani said people should revisit the idea of investing with annuities.
"The debate on retirement and the role annuities play in retirement planning needs to change," says Bhojwani. "No other financial product offers guaranteed income for life."
There are two types of annuities - fixed and variable. A fixed annuity guarantees that a specific amount of money will be generated. A variable annuity, on the other hand, has investment options where the income is derived from the funds can vary. People should consider their retirement needs when selecting a plan.
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