Annuity Rollovers Put Your Investments Work For You

Oct. 16, 2009 - PRLog -- Chicago (InsuranceAgents.com) – An annuity rollover refers to when funds are taken from one plan; like a CD, bond or 401k, and reinvested into an annuity. Annuity rollovers occur more often than you may think because not everyone makes the right choice the first them they start investing their money. An annuity is a contract set up between a consumer and a life insurance company. This contract states that the consumer will pay the life insurance company a certain amount either at once or over a period of time, in exchange for future income.

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In a recent article posted by InsuranceAgents.com, “Breaking Down Annuity Rollovers,” they discuss the circumstances in which an annuity rollover may take place. Exchanging a pension for an annuity is a common example of an annuity rollover. “Employees who spend a significant amount of time working for a company typically become vested in its pension plan,” states the article, “Once retirement comes along, however, he/she may wish to partake in an annuity rollover instead of taking the pension because, as recent events have displayed, pension plans have a tendency to fall victim to economic misfortune.” Another type of annuity rollover is from a mutual fund to an annuity. Annuities allow people to have more fixed-income investments rather than risky ones.

If you’re current investment in a CD or bond is about to expire, look into reinvesting your money into an annuity fund. You will continue to benefit off your investment and properly plan for your future.

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