Annuities

When it comes to receiving their prize, Powerball jackpot winners have two options: a lump-sum cash payment that is less than the advertised jackpot, or an annuity that divides the whole award out over a 30-year period. Each option has advantages and disadvantages, so here’s how the Powerball annuity works and how to figure out […]

An annuity is a series of annual payments made over a specific time period or for the rest of one’s life. Fixed or variable, instant or deferred, lifetime or term certain are some of the methods to distinguish them. When lottery winnings are annuitized, they are set up as period certain, fixed instant annuities, which

Some people like to know that they will receive a set interest rate and that their retirement funds will not be put at risk. New York Life offers annuities that guarantee the amount of your capital, ensuring that it never decreases. Is New York Life a good annuity company? Individual Annuity Providers rank first in

Retirement planning entails both the expected and the unexpected, and the future is fraught with uncertainty. Inflation, taxes, healthcare expenditures, and investment choices are all factors to consider. When am I required to withdraw money from my Traditional or Rollover IRA? There are few exceptions to the rule that you must begin receiving money from

The state of Illinois is facing its own budgetary reality as lawmakers enter their final weeks in Springfield: $6.5 billion in unpaid bills, a $130 billion pension gap, and credit ratings that are still just above junk-bond status despite an income-tax boost last summer. That makes it an outlier in the Midwest, a state that

Pacific Life is one of the oldest annuity and life insurance firms in the United States, with a 150-year history. Pacific Life has $171 billion in assets, according to their financial analysis from 2019. Pacific Life now offers quick annuities in addition to fixed and variable annuities. If you’re unsure about how an annuity might

After the complete cost of the plan has been recovered, annuity payments you or your survivors receive are normally fully taxable. How is taxable amount of survivor annuity calculated? The tax-free component of each full monthly annuity payment is calculated using the Simplified Method by dividing the employee’s “cost” by a number of months based

While a fixed annuity can reduce market risk, there are other factors to consider when evaluating whether or not a fixed annuity is right for you. The “guarantee” of an annuity is only as good as the insurance company that issues it. In the event that an insurance company fails, state guarantees may exist, but

An annuity, in general, is not garnishable. Certain types of income are immune from being seized by creditors to pay a judgment owed, and annuity income is one of them. Each state has its own set of rules about whether an annuity can be garnished to pay off a debt. If you’re in a tight

A qualifying annuity is one that is acquired with pre-tax cash from an IRA or 401(k) (k). Premiums for qualified annuities may be tax deductible. A non-qualified annuity is one that is purchased after taxes and not from a tax-favored retirement plan. Premiums for non-qualified annuities are not tax deductible. Are annuity contributions tax deductible?