Invest in Annuities

What are Annuities?
Annuity payments are like mortgages payments in reverse. When you take out a mortgage, you borrow a large sum of money and pay the principal and interest back gradually over a number of years. With an annuity, you invest money with a financial institution that makes regular income payments to you consisting of both principal and interest.

Of course, a mortgage ends when the loan has been completely pad off. An annuity, on the other hand, can be set up to pay an income for the rest of your life, or the rest of your spouse’s life should you predecease him or her.

Benefits of annuities
Unlike GICs, mutual funds and other investment products that can be depleted, annuities are designed specifically to provide lifelong income in retirement.

Invest at current rates
With annuities, you can lock in a portion of your portfolio now at current interest rates, so you’re guaranteed a certain amount of income. Later, you can lock in another portion of your portfolio at a potentially higher interest rate. This is similar to a dollar-cost-averaging savings strategy that reduces risk over time and evens out investment returns.

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