Annuities

During a depressed market, a GMWB rider preserves your annuity’s maximum value, commonly known as the “benefit base” or “high-water mark,” while allowing the underlying investments to increase. A GMWB shifts market and longevity risk from the annuity owner to the insurance firm underwriting the guarantee in this way. How is a benefit base the […]

Riders for living and death benefits are optional add-ons to annuity contracts that you can purchase for a charge. A living benefit rider ensures that the annuitant receives a payout while he or she is still alive. Beneficiaries are protected by a death benefit rider if the annuity’s value drops. Not all riders are created

A buffer annuity is a variable annuity that resembles an indexed annuity in several ways. Indexed annuities track the performance of a market index, allowing investors to share in some of the gains. These products usually provide some loss protection and set a limit on the amount of money you can make over a set

A multi-year guaranteed annuity, or MYGA, is a fixed annuity that guarantees a fixed interest rate for a set length of time, often three to ten years. A MYGA is suited for someone approaching retirement who seeks tax deferral and investment return assurance. How does a guaranteed annuity work? On the investor’s contributions, fixed annuities

To help defined benefit pension schemes reach their de-risking goals, Scottish Widows offers custom bulk annuity options. A bulk annuity is an insurance policy purchased by pension scheme trustees to better secure members’ benefits by eliminating longevity, investment, interest rate, and inflation risks associated with defined benefit pension schemes, either as a scheme asset (a

The calculation of the investment return credited to your account is one aspect of indexed annuities that is sometimes misunderstood. It’s crucial to understand how the index is tracked, as well as how much of the index return is credited to you, in order to figure out how the insurance company calculates the return. Tracking

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

A Variable Deferred Annuity is a contract with a life insurance company that allows you to save money while deferring taxes until you withdraw the funds. Furthermore, you can transfer funds between the underlying investment funds without incurring federal income tax consequences. What are the benefits of a deferred annuity? A retiree can benefit from