There are no average annuities customers so there are specific types of annuities that ING Direct offers to correspond with different customers’ needs as well as their investment goals. These annuities include, fixed annuities, indexed annuities, variable annuities and immediate annuities.
Fixed annuities are very stable, predictable, and fixed contracts that pay out a fixed rate of return, and this interest rate is guaranteed for a certain period of time. No matter how much interest rates fall, there is a price bottom to guarantee that your money will always earn a certain amount of income. For this reason, fixed annuities are good for people who do not want to take a very large risk with their investments. The income earned from interest is also tax deferred so you will not have to pay any taxes on the deferred income until you make a withdrawal. Your money grows faster than you might think because you would have been paying that money out to the IRS.
Index annuities are similar to fixed annuities. Your annuity receives a guaranteed amount of interest, but you could receive higher crediting based on certain factors affected in the market. Index annuities offer a guaranteed amount of interest and an earning potential that can literally go through your roof because it is only tied to conditions in the market on the stock market index, and the stock market index can go up wildly, piling more cash into your pockets. What is better is that there is a single guaranteed amount of interest you will earn so you can only go higher based on market conditions. You can not go lower than a certain interest threshold.
Variable annuities are wholly different from fixed or index annuities because it comes with a portfolio of investment options to help you allocate your annuity investment as you see fit and no other way. There are options within the options, in other words, that can give you a tolerance for risk threshold, conservative to aggressive investing options, and a fixed option for investors that really want to play it safe.
Immediate annuities are the easiest types of annuities to understand. They are not deferred annuities like the others. The immediate annuity does not accumulate any money whatsoever. It is strictly purchased to give you an income dispensation on a regular routine that begins the moment you sign up for it.
With all ING Direct annuities, you can receive your income in multiple ways. There are several demographics that are suited particularly well to annuities. People who want retirement income set up for them ahead of time, people who have inherited a large sum of money, and people who have been awarded a court settlement. Whether you are investing to set aside for retirement or you want to maximize a lump sum that has been given you, it is best to go with ING Direct when purchasing annuities because of their diverse options that are set up for people to purchase.