Annuities

An annuity is a contract between you and an insurance company in which you pay a lump-sum payment or a series of payments in exchange for regular payments, which can start right away or at a later date. What are the 4 types of annuities? Immediate fixed, immediate variable, deferred fixed, and deferred variable annuities […]

For many Malaysians, the word “retirement” conjures up images of a dream come true. Retirement, on the other hand, will be a nightmare for us if we don’t plan adequately and early enough. Given the rising cost of living and increasing rate of inflation, many Malaysians approaching retirement age may find it difficult to retire

An annuity that is payable at the start of each period is known as an annuity due. An standard annuity pays out at the end of each period, but an annuity due pays out at the beginning of each period. Rent paid at the beginning of each month is a classic example of an annuity

Simply expressed, a market value adjustment (MVA) is a provision found in annuities that specifies interest rate guarantees as well as an interest rate adjustment factor. Typically, the MVA is used on what is known as a modified guaranteed annuity in the industry (MGA). When it’s time to cash in your modified guaranteed annuity, the

A fixed annuity is a type of insurance contract that guarantees the buyer a precise, fixed interest rate on their account contributions. A variable annuity, on the other hand, pays interest that varies depending on the performance of an investment portfolio specified by the account’s owner. In retirement planning, fixed annuities are frequently employed. What

The cost of a hypothetical annuity is the cost of purchasing equivalent benefits on the open market. The cost of a hypothetical annuity is not a regular benefit. It’s on your statement to show you how much similar benefits would cost on the ‘open market.’ The figures are based on current market conditions. At different

Before and after you become eligible for Social Security benefits, the Level Income Option provides you with virtually equal monthly retirement payments. After you begin receiving Social Security Retirement benefits, you will be eligible for a pension. The Plan’s contributions will be reduced to reflect the Social Security benefits you are receiving. Is level income

When you retire as a member of a pension fund, pension preservation fund, or retirement annuity fund and choose to take a lump payment, you can take (commute) a lump amount equivalent to one-third of your retirement interest in that fund. The remaining two-thirds of the money will be paid out as an annuity (a

A grantor retained annuity trust (GRAT) is a financial tool used in estate planning to reduce taxes on substantial monetary transfers to family members. An irrevocable trust is established for a specific term or amount of time under these plans. When a trust is founded, the person who establishes it pays a tax. The assets

A reversionary annuity is a reduction in your retirement benefit in exchange for a higher survivor payment for a beneficiary when you die. A reversionary annuity cannot be canceled. What is a reversionary policy? You sell all or part of your house in exchange for a cash lump sum, a recurring income, or both under