Annuities

A variable annuity is a hybrid product that combines investment and insurance. You invest in mutual-fund-like accounts, and earnings are tax-deferred until you remove the funds. Withdrawals, like distributions from regular IRAs, are taxed as ordinary income rather than at lower capital-gains tax rates. Is a variable annuity the same as an IRA? The most […]

An annuitant is a person who has the right to receive regular payments from a pension or annuity investment. The contract holder or another individual, such as a surviving spouse, can be the annuitant. Annuities are commonly thought of as income enhancements for retirees. They could be linked to a pension scheme for employees or

According to the Social Security Administration, a guy turning 65 today can expect to live until he is 84 years old. The average age of a woman is 86.6. About a third of today’s 65-year-olds will live to reach 90, with about one in seven living to be 95. Annuities entail signing a contract with

An annuity is a financial product sold by insurance firms that guarantees a consistent income stream in retirement. Investors make a one-time or a series of one-time payments, and the annuity returns a fixed amount to them in regular dividends, either immediately or later. These distributions can be used to cover recurring or critical costs.

The Annuity Commencement Date is the date on which annuity payments will start. At the time of application, the Contract Owner usually specifies the Annuity Commencement Date. What happens if the annuitant dies before the annuity start date? An annuity contract usually states that if the annuitant dies before the commencement date of the annuity,

The exclusion ratio simply refers to the percentage of an investor’s return that is tax-free. The exclusion ratio is a percentage based on the return on an original investment in dollars. Any profit that exceeds the exclusion ratio is taxed, such as capital gains tax. The exclusion ratio usually applies to non-qualified annuities. What is

Annuities are retirement plans that can assist offer a predictable, guaranteed income stream throughout retirement. An annuity is a contract with an insurance company that guarantees you a certain amount of money during your retirement years. What is meant by annuity in insurance? An annuity is a financial product that allows you to receive a

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

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

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