Annuities

An annuity is a long-term investment issued by an insurance company that is intended to protect you from outliving your income. Your purchase payments (what you contribute) are turned into recurring payments that can last a lifetime through annuitization. What risk does an annuity cover? Longevity risk, or the risk of outliving one’s assets, is […]

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. When should I turn on my annuity? Starting an annuity at a later age is definitely the greatest option for someone with a relatively healthy lifestyle and strong

Period certain annuities let the customer to pick when and for how long they want to receive payments, which can then be distributed to beneficiaries. This is in contrast to the more traditional life, lifetime, or pure life annuity, which provides an income payout for the rest of the annuitant’s life, regardless of how long

If this is your first year receiving retirement plan distributions and you made after-tax contributions, the plancost (your after-tax contributions) may be shown in box 9b of your Form 1099-R. If the information isn’t there, and you’re not sure if you made any after-tax payments to the plan, you should contact the administrator. What is

What do we think, what do we say, and what do we do with our money? Too frequently, misconceptions are passed down from parent to kid, financial adviser to client, real estate agent to purchaser, car salesperson or insurance agent to consumer, colleague to colleague, neighbor to neighbor, or friend to friend, and we base

Orman predicts that “we will come to another financial hard period in the market” and that interest rates will remain low for a long time. So, if you’re seeking for a steady stream of income, an income annuity would be a good option, she says. They’re simply a monthly payout from an insurance company that

State insurance commissioners oversee fixed annuities. Check with them to make sure your insurance broker is licensed to sell insurance in your state, and see whether your state has a guaranty association that can provide some protection if an insurance company doing business in your state fails. What are annuity guarantees backed by? Nonprofit guaranty

Your premiums are invested in high-quality, fixed-income products like bonds by fixed annuity providers. The insurance company assumes all investment risk because your rate of return is guaranteed. Fixed annuities are tax-deferred investments. Where is annuity money invested? An annuity is a contract between a person and a financial institution. The investor makes a lump-sum

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

Immediate fixed, immediate variable, deferred fixed, and deferred variable annuities are the four primary forms of annuities available to fit your needs. These four options are determined by two key considerations: when you want to begin receiving payments and how you want your annuity to develop. When you start getting payments – You can start