Annuities

If asked, PERA can withhold Colorado state income tax. Other states’ taxes are not withheld by PERA. Total pension income up to $20,000 per year per person for retirees age 55 to 64, or $24,000 for retirees age 65 and beyond, is exempt from Colorado state income tax. The exclusion amount for that year is […]

A ten-day or longer “free look” term is common in variable annuity contracts. During this time, you have the option to cancel your contract without incurring any fees, and you will be refunded the amount you paid. During the “free look” period, you can continue to ask questions until you fully understand the variable annuity

Millions of people acquire annuity contracts for a variety of reasons, ranging from variable to fixed annuities. These goals can include everything from long-term income to asset protection and tax-advantaged growth. Each annuity has a varied maturity duration because it is a contract. Your annuity’s maturity duration may be as short as a few years,

If you sell or remove money from a variable annuity during the “surrender period,” a predetermined period of time that normally lasts six to eight years after you purchase the annuity, you must incur a “surrender charge.” Surrender fees will diminish the value of your investment and reduce your return. What is the purpose of

After analyzing 326 annuity products from 57 insurance companies, we discovered that a $250,000 annuity will pay between $1,041 and $3,027 per month for a single lifetime and between $937 and $2,787 per month for a joint lifetime (you and your spouse). Income amounts are influenced by the age at which you purchase the annuity

A 10-year fixed annuity earning 3.25 percent is now the highest guaranteed annuity rate. Which annuity pays the highest interest? Deferred fixed annuities protect principal and typically pay greater interest rates than Treasury bonds and certificates of deposit. Guaranteed five-year annuity rates have recently ranged from 2.25 percent to 2.5 percent, compared to 1.25 percent

However, you may be concerned about the current value of the annuity you’ve acquired. Given a predetermined rate of return or discount rate, the present value of an annuity is the total cash value of all future annuity payments. The present value of an annuity might assist you in determining how much value remains in

An annuity rate is the annual percentage increase in the value of an annuity. Insurance firms set the rates for annuities. The annuity return rate is determined by the amount of money invested, the interest rate, and the contract period. What is the typical interest rate on an annuity? According to AnnuityAdvantage’s online rate database,

After analyzing 326 annuity products from 57 insurance companies, we discovered that a $250,000 annuity will pay between $1,041 and $3,027 per month for a single lifetime and between $937 and $2,787 per month for a joint lifetime (you and your spouse). Income amounts are influenced by the age at which you purchase the annuity

Lottery winners have the option of receiving their prize as an annuity or a lump sum. The annuity option, also known as a “lottery annuity,” gives annual payouts over time. A lump-sum payout is when you receive the entire amount of your after-tax profits all at once. Winners of the Powerball and Mega Millions games