You procure a variable annuity and are worried that the insurance company will go at the beck and you will lose all your money.

Money invested in a variable annuity is typically in segregated subaccounts that are fall from your insurer’s balance sheet. Even if the insurer runs into disquiet, your money should not be affected. Now, that said, you do need to c that your variable annuity is susceptible to market losses; that’s what the information "variable" means. How much your account is worrying large a function of the performance of the subaccounts (funds) you are invested in.

You have a single-importance fixed annuity and are worried that the insurance company will go second to and you will lose your money.

With a single-premium stuck annuity your payout is indeed a guarantee from your insurer, so if your insurer goes subservient to there is reason to be concerned. Concerned, but not panicked. First, in the unlikely as it anything happens to your insurer, there is a state guaranty bread that will swoop in to cover annuity payments up to certain limits. In most states, the guaranteed payout for an annuity is $100,000, despite the fact that it can be higher in some states. If your annuity exceeds your form’s guaranty limit, you need to weigh the cost of cashing out carefully.

You are retired and require a higher income payout than you can get from bank CDs today.

Over municipal bonds and dividend paying stock mutual funds or ETFs. As I a postcard this in November 2008, municipal bonds are paying the highest yields I entertain seen in many years, so take advantage of them. I want to be shiny: You never want to put money that is in an IRA, 401(k), or other tax-deferred account in municipals. Because your specie is already tax deferred, you get no added benefit from buying minis. So I am talking give money you invest outside of your IRA and 401(k). Now, I know that earlier I told you that the pact portion of your IRA and 401(k) should be kept in Treasuries with sawn-off maturities, but I have a different strategy for municipal bonds. I think it is quick to invest in municipal bonds with maturities of 10 to 20 years. As of November 2008, a 20-year global obligation municipal bond has a yield of 5.14 %. For someone in the 28 % federal tax category, that is the equivalent of a 7.1 % yield. That is a seriously great revert on your money. If you are in a higher tax bracket, your return will be smooth higher. As much as I love municipal bonds, I want to emphasize that this scheme only makes sense if you have at least $100,000 to invest; that is how much you demand to be able to buy a diversified portfolio of five to 10 different bonds and not be hit with inhuman fees. (If you don’t have that much money, stick with Cache notes.) Another strategy to generate more income in 2009 is to initiate a portion of your money in high dividend individual stocks or ETFs.

Because of the imbue market losses, some company dividend payouts are now 5 % or parallel with higher. That’s a lot better than what you can get at the bank. However, you fundamental to know that dividend stocks of course have greater peril than a bank CD. Even though you are receiving a nice steady dividend payout, the underlying value of your shares can all joking aside fall. And in today’s tough economy, there is the possibility that some companies such as the concrete-pressed financial services industry might find that they be suffering with to suspend or reduce their dividend payout. You need to understand that companies determine to pay dividends they are not required to do so. In the third quarter of 2008, more than 100 companies cut their dividends, according to Requirement & Poor’s. So here’s my strategy for cautious dividend investing:

Invest just money that you know you will not need to cash in for at least the next 10 years. You purposefulness earn income (the dividend payout) on the money, but because these are stocks, you require to know that if the share price declines you won’t have to sell at a big shrinkage. Stick with low-cost ETFs. Owning individual stocks increases your gamble of suffering big losses if there is an unexpected problem in that one company or manufacture. It’s safer to invest in a diversified portfolio of dividend-paying stocks. I like Vanguard Tall Dividend Yield (VYM) and iShares Select Dividend Index (DVY) if you invest in ETFs.

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