Annuities

People are becoming more interested in annuities as a means of saving for retirement. When I wrote a column regarding life annuities two weeks ago, people started asking a lot of questions about how these income-for-life generators actually work (read it online here). Here are some of the most frequently asked questions, with solutions provided […]

The annuity option for retirement planning has finally piqued people’s interest. When I wrote a column regarding life annuities two weeks ago, people started asking a lot of questions about how these income-for-life generators actually work (read it online here). From insurance companies and financial advisors, we’ve compiled a list of some of the most

Insurance firms offer annuities, which are financial products. Annuities can be used for a variety of estate planning purposes, but the most common annuities are designed to fulfill two primary goals—to generate an income stream during your lifetime and to transfer assets to a designated beneficiary after you die. There is no need to go

With the help of annuities many people can achieve their financial goals, but the wording of annuity contracts can be quite difficult to comprehend. An annuity’s current cash value can be useful in weighing your options, but beware of surrender charges, which can apply if you try to close out your annuity before a specified

Lifelong payments are promised following the stipulated term. The first income payment following the date of death will be reduced if the policyholder chose a death benefit reduction. There is no death benefit if the annuitant dies after the guaranteed time. What happens to annuities when someone dies? The owners of annuities negotiate with insurance

It is the IRS mandated minimum yearly withdrawal from tax-deferred retirement funds for individuals aged 70 1/2 or 72, depending on the year of birth. RMDs apply to annuities held in an IRA or 401(k). Nonqualified annuities, on the other hand, do not require withdrawals. Are annuities subject to RMD’s? The IRS mandates minimum distributions

Structured settlements and annuities can be sold as a single, lump sum for a precise monetary amount (such as $10,000) as opposed to periodic payments that may not equal the exact amount you require. There is a monetary value in the annuity for the partial and lump sum options. It is possible to sell more

Yes, annuities allow you to withdraw all of your money at any time. It is possible to withdraw money from an annuity at any moment, but be aware that you will only receive a fraction of the contract’s value. How much can you withdraw from an annuity each year? Owners can also withdraw up to

Your RRSP can be withdrawn at any time1 if it is not locked in to a specific plan. When you take money from your account, you’ll have to pay withholding tax on it and report it as income on your taxes. Tax-deferred withdrawals from an RRSP are possible under certain circumstances. For example, the Home

The annuity option for retirement planning has finally piqued people’s interest. After reading a recent column in this publication, readers began asking a lot of questions about how life annuities work, even though I’ve been writing about them for years (read it online here). In this section, insurance and financial advisors have convened to answer