Annuities

Contractual obligations between as many as four parties can be found in an annuity contract. It includes the issuer (typically an insurance firm), the annuitant, the owner of the annuity, and the beneficiary. An annuity is owned by the individual who purchases it. Life expectancy is used to determine how much and when an annuitant’s […]

It is possible to receive regular payments from a fixed index annuity based on the performance of an underlying index. It is possible to track the S&P 500, the Nasdaq, the Russell 2000 or the Hang Seng index using fixed index annuities. Fixed index annuities, unlike index funds, are normally protected from principal losses. In

An annuity purchased with non-registered funds is taxed on the income received in that year, although only a portion of each payment is taxable. There are two types of taxation: prescriptive and ad hoc. How can I avoid paying taxes on annuities? Until you withdraw money or begin receiving payments, you do not have to

An annuity purchased with registered funds is taxed on the full amount of income you get in the year it is received. To avoid paying taxes on a portion of your annuity’s annual income, you must purchase it with non-registered assets. How can I avoid paying taxes on annuities? You can lower your taxes by

Investing in an annuity later in life is the ideal choice for those who have a healthy lifestyle and decent genetics. A 401(k) plan or pension as well as Social Security is assumed to be in place for those who wait until later in life to retire. In general, it is not wise to lock

The present and future worth of a sum can be calculated using an annuity formula. An annuity is a fixed sum of money that is paid out on a monthly basis. As part of an annuity, you agree to make a one-time payment or a series of payments to an insurance company, and in return,

As a rule, annuity contracts utilize the phrases present and future value. Present value is the money that must be invested now to ensure a desired future payment, whereas future value is the total that will be accomplished over time. What is the difference between present value and present value of an annuity? It’s important

Who would be a good candidate for this annuity? Variable annuities can be a terrific option for investors who are willing to accept some risk in exchange for the potential rewards of market exposure. Often, these annuities make the greatest sense for retirees who have been out of work for a longer period of time.

For a lump sum or series of lump sums, you and an insurance company enter into an agreement wherein you will receive a fixed amount of money in the form of a regular payment for the rest of your life. Which of the following best describe an annuity due? An annuity that requires immediate payment

Variables like these are common. Tax-deferred returns, a death benefit, and other benefits not frequently found in other investment vehicles distinguish annuities from mutual funds. Guaranteed lifetime income from annuity alternatives. An insurance firm and you enter into a contract for a variable annuity. Tax-deferred growth and insurance features like the opportunity to convert your