Annuities

An annuity gives you the most control over your money in general. If you receive a lump-sum pension payment, you can spend the money as you like. For some people, purchasing an annuity with a portion of their lump sum and investing the balance in an IRA or other tax-deferred retirement account may be the […]

A qualifying annuity is one that is funded with money that has never been taxed before. 401(k)s and other tax-deferred retirement accounts, such as IRAs, are commonly used to fund these annuities. Payments from a qualifying annuity are fully taxable as income when you receive them. This is due to the fact that no taxes

While a fixed annuity can reduce market risk, there are other factors to consider when evaluating whether or not a fixed annuity is right for you. The “guarantee” of an annuity is only as good as the insurance company that issues it. In the event that an insurance company fails, state guarantees may exist, but

Perpetuity is an annuity with an endless life and annual payments that never stop. Perpetuity refers to a bond or instrument that has no specified maturity date. Is an annuity a perpetuity? Annuities are investments that pay out for a predetermined period of time. Perpetuities are investments that pay out for the rest of your

An IRA is a retirement investment account, but an annuity is a type of insurance. Annuity contracts are more expensive than IRAs in terms of fees and expenses, but they don’t have yearly contribution limits. Your annuity payments will be taxed differently depending on whether you purchased it with pre-tax or after-tax monies. The taxation

In a recent piece, I talked about some of the disadvantages of variable annuities. The high fees, deceptive guarantees, and tax treatment can make investors feel uneasy. But what if you’ve purchased a variable annuity and are experiencing buyer’s remorse? To get out of a problematic variable annuity, you have a few options. Take the

Despite the fact that pension plans qualify for a tax deduction, the maximum allowable deduction on life insurance premiums under the Income Tax Act of 1961 is Rs 1.5 lakh. The annuity is taxable as of the date you receive it after retirement. To ensure that your retirement payout is sufficient, you may need to

You will be obliged to pay Uncle Sam a 10% early withdrawal penalty as well as ordinary income tax on your investment returns if you make withdrawals before you reach the age of 59 1/2. (You will not be taxed on the amount you put into the annuity.) If you take withdrawals within the first

Athene Annuity and Life Insurance Company has an A rating from AM Best and is a key player in the annuity business in the United States. How does Athene annuity work? Fixed indexed annuities are insurance products that give both downside market risk protection and growth potential by delivering a fixed interest rate for a

In retirement, annuities can provide a steady income stream, but if you die too young, you may not get your money’s worth. When compared to mutual funds and other investments, annuities can have hefty fees. You can tailor an annuity to meet your specific needs, but you’ll almost always have to pay more or accept