Annuities

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

The potential for higher interest and premium protection are two of the benefits of indexed annuities. Higher fees and commissions, as well as gains caps, are drawbacks. What are the downside of indexed annuities? Penalty of 10% imposed by the Internal Revenue Service Withdrawing income before reaching the age of 59.5 triggers a 10% IRS

A Roth annuity might provide you with tax-free lifelong income or lower your risk while saving for retirement. Because you won’t pay taxes on the money you remove during retirement, a Roth IRA is a particularly potent retirement savings vehicle. An annuity is a type of investment that provides a steady stream of income. Is

A split-funded annuity is a type of annuity in which a portion of the principle is used to support immediate monthly payments and the remainder is saved to fund a deferred annuity. What is one of the major disadvantages of split dollar plans? Let’s imagine you want to provide low-cost life insurance to a few

In court cases, plaintiffs are given structured settlements. Individuals are able to acquire annuities. If you bought or inherited the annuity, you don’t need court permission to sell it. Annuity payments are generally easier to sell than structured settlement payments. You may be able to take a modest portion of your retirement income without incurring

A temporary annuity is a supplement to your retirement income. It gradually raises your monthly payment until you reach 65 years old or die, whichever comes first. This can help you figure out how much your pension will be before and after you turn 65. What type of annuity is considered a temporary annuity? A

“A pension is paid to the company/government and then paid out to the individual (upon retirement) by the company/government. An annuity is a contract between you and an insurance or investment business that commits to paying you a set sum each month or year. What is a government annuity for retirement? FERS is a retirement

Group annuity contracts are those that are chosen by a company to be offered as retirement benefits to their employees. Nonprofit and public-sector institutions, such as public schools, charities, and hospitals, are particularly fond of group annuities. Employees can fund these retirement plans or employers can contribute to them. Annuities have the advantage of being

Variable Annuity Overview from John Hancock. Home. Overview of Variable Annuity. An annuity is a long-term contract between you and your insurance company that provides you with income in retirement. Can you lose your money in an annuity? Variable annuities and index-linked annuities both have the potential to lose money to their owners. An instant