Clean Up Your Finances Before You Invest (6)

Annuities are contracts sold by insurance companies to provide payments at specified intervals, usually after retirement.



You will be charged a penalty for withdrawing funds prior to a certain age, but you won't be taxed until you withdraw the funds.



Annuities are considered to be safe,low-yielding investments.



Additionally, annuities have death benefits that equal either the current value of the annuity or the amount that has been paid into it - whichever is has a higher value.



Once you are ready to start investing, you need a plan.



Start by making a list of your most important financial goals like buying a home, paying for a child's college education or living comfortably in retirement.



When you have the extra money, make a habit of paying yourself first by putting money into your savings and investments.



If you feel you don't know enough about investing on your own, you can always seek professional investment advice.



Investment professionals provide a variety of services at different prices.



Some are very expensive and others are very affordable; it pays to shop around.