Examine the different types of annuities and see if an annuity is the right fit for your retirement portfolio.

Equity Indexed Annuities

The returns from these annuities are based on the increase in the stock or equity index, such as the S&P 500. If stocks go up, you get a share of the profit. If the stocks fall, you won’t lose any money, since your contract assures you minimal returns of principal amount plus pre specified interest (usually 3%). In effect, you have a chance of making a profit, but you are not liable to bear any losses. So who does? And how can someone offer you stock market profits without putting your investment at risk?

By | 2015-05-23T07:47:36+00:00 June 7th, 2012|Annuities, Annuities 101|

Finding the Best Annuity

Annuities were designed to be a tax deferred alternative for conservative investors stuck in between risky direct forays into the markets on one side and woefully inadequate returns from interest accruing retirement plans. Annuities offer a great deal of flexibility to investors in terms of selecting sub-accounts, period and amount of investment, whether or not to take on any risk as also the methods of investment accumulation and distribution.

By | 2015-05-23T07:48:30+00:00 June 7th, 2012|Annuities, Annuities 101|

Using Variable Annuities to Fund a Qualified Plan

Variable annuities are gaining popularity as a funding vehicle for qualified retirement plans. But why would an investor want to put one tax deferred vehicle inside another one? Variable annuities offer much more than tax deferral. Additional benefits include continued income flow even if you exceed life expectancy levels, guaranteed death benefits and expense charge guarantees.

By | 2015-05-23T07:49:53+00:00 June 7th, 2012|Annuities, Annuities 101|

Annuities as an Investment Vehicle

Annuities are investment products with an insurance component based on the financial strength of the annuity issuing insurance company. Annuities offer an attractive alternate option to secure a steady lifetime income stream with flexible options based on the investor's preferences of security and risk. Annuities are also unique in the sense that income from stock market gains and contributions are tax deferred until you decide to withdraw.

By | 2015-05-23T07:50:46+00:00 June 7th, 2012|Annuities, Annuities 101|

Joint and Survivor Annuity

A joint and survivor annuity is held by two or more individuals, usually by husband and wife, under an arrangement wherein annuity payments are made in full while both the contract holders are alive, and at a pre-specified percentage (50-100%) of the full amount after the death of one of the annuity holders. One of the annuity holders is the primary annuitant while others are joint annuitants.

By | 2015-05-23T07:51:44+00:00 June 7th, 2012|Annuities, Annuities 101|

Split Funded Annuities

which provides regular payments for a fixed period, while the latter is an accumulated account which accumulates cash value at interest. The value of the deferred annuity generally equals the combined value of the premiums paid for both annuities by the time the fixed annuity payments dry up. The immediate fixed annuity will provide a [...]

By | 2017-07-30T20:03:33+00:00 June 7th, 2012|Annuities, Annuities 101|

Annuitization vs. Systematic Withdrawal

Variable annuities typically offer a variety of payout options, ranging from highly flexible systematic withdrawals to pure life annuities which guarantee lifetime income payments. Between these opposites lie a wide range of payout strategies which combine extended payments with a minimum amount, or period, guarantee. A systematic withdrawal strategy fulfills your requirements while preserving and stretching the principal as far as possible.

By | 2015-05-23T07:54:30+00:00 June 7th, 2012|Annuities, Annuities 101|

Variable Annuities

Variable annuities allow the owner considerable flexibility to invest annuity premiums in any way they see fit. The risks involved are the same as investments in stocks, bonds or mutual funds. The investor gets to keep the entire profit from gains and is liable to bear the loss for any decline in the price of invested holdings.

By | 2015-05-23T07:55:20+00:00 June 7th, 2012|Annuities, Annuities 101|

Variable Annuity Buying Tips

Variable annuities bring many advantages to the table for investors looking for a secure and high value investment, especially for those concerned about a steady post retirement income. But with a proliferation of annuity products and issuing insurance companies competing to catch the eye of retiree investors, it becomes a lot easier if you know what you want, and more importantly, if you know what questions you need to ask.

By | 2015-05-23T07:56:54+00:00 June 7th, 2012|Annuities, Annuities 101|