How a Variable Annuity Can Contribute to Your Retirement

A variable annuity is similar to a 401k in some respects. You can choose which investments you would like to add into your portfolio. The premium can be divided with portions being used to fund several subaccounts that are diversified according to risk. These separate investments may include an ultra conservative money market fund, bonds, mutual funds, and more risky areas such as international equities. When purchasing these products, you have the choice of either making a full premium payment upfront or investing into the fund by making your payments over a set period of time.

You can typically expect the following features from a variable annuity:

* A flexible premium that is paid either in a simple upfront payment or invested in gradually over time.

* Offer more equitable investments such as stocks and mutual funds as opposed to CDs.

* You choose the risk level of your investments and allocate among them however you like.

* You are able to shift your investments without penalty as you wish in order to adjust to the market.

* You receive checks every month with a rate of return depending on the performance of your investments.

* Generally, you are free to invest as much as you like tax free.

If you are interested in getting the maximum return on your investment, then it is recommended that you choose a variable annuity as opposed to the fixed rate alternative. They have provided higher yields historically, with the catch being that there is greater risk over short and medium time periods. It is impossible predict just how risky investments will perform, but judging from the past they can typically be expected to yield up to 12 percent over a period of 10 years or more.

Although this is a very trusted and widely used investment, it is a good idea to become familiar with the disadvantages of these annuities as well. For example, if you make any withdrawals for income before you reach the age of 59.5 you will be charged a 10 percent tax penalty. In addition, they are not considered to be a capital gain so although the growth is deferred, you will still be taxed according to the regular income tax rates. There are also certain fees associated with these accounts such as management and annual contract fees to cover certain expenses.

If you would like to find the variable annuity that will give you the highest yields, you will first have to be experienced in managing flexibility in your investments. The right financial advisor can help you to choose the investments that will make you the most money.

Lisa Cintron is Executive Vice President at AdvisorWorld.com.

http://www.AdvisorWorld.com will help you find the best advisor for you from a comprehensive database of financial professionals who are ranked based on the feedback of users just like you. They offer this service completely for free and with no obligation on your part.

Special Finance

Many people may want to buy a car but may not have the financial capability to achieve this. This could be due to a number of different reasons. Perhaps they have credit issues which make them undesirable to conventional lenders. This is where special finance comes in and it is designed to help customers obtain credit in order to be able to purchase a car. Majority of lenders look at the credit score to define who special finance customers are.

Your credit score is the largest aspect of the entire loan process. It will affect the interest rate that you will be expected to pay, the length of the loan etc. There are also other aspects that are considered for you to fall into this category besides your credit score. In addition, a recent bankruptcy or repossession or if you have been making late payments lately may cause complications to your credit score.

There are loans available even with your credit problems you just have to know where to look. Conventional lenders have many restrictions and car dealerships usually use them to get people funding. It is advisable that you conduct research and look for online lenders who help people with bad credit. It is important that you go for a lender who will give you a good deal that is suitable to your needs.

You should compare the various offers available and getting rates that are manageable so that you can be in a position to repay without struggling. Your down payment also plays a vital role in the loan process and will determine how you will make your loan repayments. If you make a large down payment this will automatically reduce your monthly repayments.

Mercy Maranga writes content on Finance and Finance Management. Visit her site here for more information on Finance. Special Finance

Online Mortgages - Learn How to Use the Web to Shop For Deals

Shopping around for the best interest rates on a mortgage? With so many competing companies offering the so-called "lowest mortgage rates" it can be hard to know what it is you should really be looking at. Online mortgage quotes are generally a great place to start your investigation.

If you are getting a mortgage through your bank, your options are limited to their interest rates, terms and conditions. With that said, you still have some flexibility in choosing a fixed-rate mortgage or a variable rate mortgage; and a good bank rep should consult you on the differences between them. Most people think that they need to take out a mortgage from their own bank, but this is never the case.

Mortgages brokers and companies that specialize in mortgage financing will tell you that your bank is the last place to look, as their rates are usually significantly higher in terms of interest and their repayment plans may not be as flexible as terms you may find with some mortgage companies. When you begin your search online for a great mortgage, keep a few things in mind:

• Does the mortgage broker (company) have a physical address with standard communication channels (phones, fax, support staff etc) rather than just an online presence?
• Have you ever heard of the company you're interested in - have your friends or family ever heard of them?
• When providing the online mortgage broker with your financial details - are you certain the website conducts transactions over a secure network?
• Are you aware of any fine print information that should be looked at before you apply for a quote?

Taking a few moments to consider these elements may make a huge difference. Remember that there are many shady businesses online whose only business is taking your money and running with it. Be sure that you never give out your personal financial details on a site that does not use a secure connection (look for https:// in the url and a little padlock in the bottom right or left hand corner of your screen) if these are not present, you should not pass along any personal information on that site.

Once you've conducted your research on rates, you'll want to move forward with processing - the next thing to do after that is move into your new house!

Alex Westwood is an expert when it comes to mortgages. He is an advocate for online mortgages and suggests using the Internet to research the best mortgage rates. In his spare time he writes for DebtCentral.com.