A Variable Deferred Annuity is a contract with a life insurance company that allows you to save money while deferring taxes until you withdraw the funds. Furthermore, you can transfer funds between the underlying investment funds without incurring federal income tax consequences. What are the benefits of a deferred annuity? A retiree can benefit from […]

If the corporation splits its shares, your cost basis per share will be affected, but not the real value of the original or current investment. Continuing with the previous scenario, imagine the corporation announces a 2:1 stock split, in which one old share is exchanged for two new ones. There are two techniques to figure

Ensures a steady stream of income for the rest of your life. This income will be paid to you and/or your beneficiary for as long as you and/or your beneficiary live. Preserves the value of assets that have appreciated in value. When you contribute long-term appreciated assets, such as non-income-producing property, a charitable gift annuity

When an annuitant dies before collecting the premiums they paid, a cash refund annuity is repaid to the beneficiary. Payments to the beneficiary may continue or cease when the annuitant dies, depending on the type of annuity. Do you get your money back with an annuity? In the end, annuities should only be a small

To help defined benefit pension schemes reach their de-risking goals, Scottish Widows offers custom bulk annuity options. A bulk annuity is an insurance policy purchased by pension scheme trustees to better secure members’ benefits by eliminating longevity, investment, interest rate, and inflation risks associated with defined benefit pension schemes, either as a scheme asset (a

A buffer annuity is a variable annuity that resembles an indexed annuity in several ways. Indexed annuities track the performance of a market index, allowing investors to share in some of the gains. These products usually provide some loss protection and set a limit on the amount of money you can make over a set

During a depressed market, a GMWB rider preserves your annuity’s maximum value, commonly known as the “benefit base” or “high-water mark,” while allowing the underlying investments to increase. A GMWB shifts market and longevity risk from the annuity owner to the insurance firm underwriting the guarantee in this way. How is a benefit base the

An annuity is a contract between a person and an insurance firm that can be used to help you save, safeguard your savings, or provide a regular income stream. Fixed* or variable annuities are available. Because the insurance company accepts the investment risk, your balance is safer with fixed income annuities* than with variable annuities.

Who sells Medicaid annuities and how much do they cost? Only a few insurance companies in the United States are said to sell Medicaid annuities. Allstate, Allianz Life, ELCO Mutual Life & Annuity, Genworth Financial, Nationwide, and MetLife are among the companies. What are Medicaid compliant annuities? A Medicaid Compliant Annuity (MCA) is a single

An annuity contract usually states that if the annuitant dies before the commencement date of the annuity, the beneficiary will receive the greater of the premium paid or the contract’s accrued value as a death benefit. The beneficiary’s gain, if any, is taxable as ordinary income. The death benefit of an annuity contract does not