Swiss annuities are not only a great way to make money investing but also a great way to look after yourself and your family in the future – acting as an insurance policy, a pension plan and a form of life insurance all wrapped into one. The term 'annuity' has its origins in the word 'annus' meaning year – this is also where the term 'annual' comes from. The idea then is that Swiss annuities are a form of investment where you provide a sum of up-front money in exchange for a series of annual pay outs.
In other words then, Swiss annuities are almost like the
opposite of a loan and that is how they act as a great way to make money
investing. It is different from making money investing in a bank however as the
payouts won't appear as interest on a lump you can draw out – rather they will
come to you as yearly payments of an agreed amount, almost like a salary, and
this will occur over a certain amount of time.
Of course the insurance company that provides the annuity will
make money from your initial investment by investing it further like any good
bank, and that is how they can then afford to pay you a salary that is greater
than the original amount you paid in.
Make Money Investing In Swiss Annuities
As well as using this as a way to make money investing, you
can also use it as a form of asset protection and as a way to protect your
assets in the case that you have debt to pay – partly because being in
Switzerland these investments are not subject to normal bankruptcy laws.
Likewise you can use Swiss annuities as a way to provide yourself with a
pension fund – when you retire you buy the annuity and you then use this to
keep paying you a monthly retirement when you're not working. The annuity can
also carry on paying out after you've deceased and so this way it can act as a
form of life insurance and help your family to pay of mortgages etc.
Swiss Annuities Investment
There are multiple types of Swiss annuity, and if you want to
make money investing in Swiss annuities you need to make sure that you think
carefully about the type of annuity you are going to take out. The following
are some types of annuity.
Deferred Annuity: A deferred annuity doesn't start paying out
right away, but rather at a future point in time that you have agreed upon. Of
course this is a better investment and you can gain more interest this way, but
it also means you have to wait for your payout.
Immediate Annuity: The other way to make money investing with
annuities is with an immediate annuity which will start paying out from year
one – not as much of an investment, but means you don't have to go as long with
nothing in the bank.
Fixed Annuity: A fixed Swiss annuity pays out a fixed amount
each year for a pre-determined amount of time.
Variable Annuity: A variable annuity is based on the success
of the investments made by the insurance company, and this is more of a gamble,
much like making money investing other ways. If the investments go well the pay
out is bigger, but this time there is also an element of risk.
Simple Life Annuity: A simple life annuity simply pays out until your death – making it a gamble on the part of the insurance company but great as a form of pension guaranteeing you a salary for that specified amount of time. Of course there's also the risk that the payouts will stop before the initial investment has been returned in full, and likewise they can't be used as life insurance obviously.
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