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2012年8月31日 星期五

The Advantages of A Flexible Premium Deferred Annuity


People who are looking for insurance solutions and information to help them make informed decisions will benefit from this article, which covers flexible premium deferred annuity Insurance. Annuities can make for really good retirement tools you can use to defer paying taxes on money you don't use; furthermore annuities guarantee an income you will not outlive.

What Is Flexible Premium Deferred Annuity (FPDA)?

Insurance companies sell contracts which have variable premium payments and payments amounts. Premium payments can be monthly, quarterly, semi annually or annually throughout the life of the policy holder, for 2 or more people. It can also be for a predetermined time period.

Flexible premium deferred annuity accepts ongoing small deposits of even $50 per month. The interest rate guarantee period on each deposit is for one year; at the end of the guarantee period the depositor can benefit from competitive renewal rates, which are based on current market conditions.

The Advantages of Flexible Premium Deferred Annuity

- One of the main advantages is that each contract comes with a principal guarantee; this guarantee ensures that a client does not receive any amount which is less than the total premium payment due.

- Each contract has a 9 year surrender charge period and there are a number of ways by which the client can access funds before the 9 year surrender charge period. The distinct advantage to the client is the surrender charge does not have to be paid. At the end of the surrender charge period there is no fixed time period in which the client has to decide upon restarting the surrender charge or discontinuing the annuity.

- As a savings medium flexible premium deferred annuity is an ideal choice for anyone who is looking for flexibility on continuing premium deposits and tax deferred financial growth. It is a very good method by which to enhance retirement savings plans, which can be used to fund your IRAs, SEPs and other plans.

- A truly great advantage of this method is that irrespective of any economic fluctuations the client will never receive anything less than the total premium payment due (minus any loans or withdrawals). This type of annuity comes with a principal guarantee most investment mediums do not offer.

- No surrender charge will be levied for clients who wish to take early retirement provided they have held the annuity for a period of 5 years and reached the age of 59.5 years at the time of surrendering the annuity.

- Flexible premium deferred annuity is a dependable savings option for people who do not wish to take risks with their money for fear of losing a part or all of it.

- Annuities are one of the best methods by which you can provide a steady source of income for yourself after retirement, when the fear of your money running out begins to haunt you.

- With annuities your investments grow tax free - this is probably one of the best benefits for people in the retirement stage of their lives.

- Anyone can contribute any amount to the flexible premium deferred annuity plan as there are no restrictions on investments.




Robert Eldridge holds over a decade of experience as a multiline agent in multiple states and currently serves on the membership council of the National Association of Insurance and Financial Advisors. Robert has the unique blend of in-depth knowledge in the Medical, Life, Annuity and Mortgage industries. He is also a true philanthropist who works extensively to raise money and awareness for the Shriner's Hospital for Children.

Robert's clients value his insight into recognizing optimal solutions to their healthcare and financial needs in this evolving financial market. Staying current with changes in the industry, coupled with his experience and insight into excellent customer service, his philosophy is never selling a product unless it brings an added benefit and true value to you and your family. Please visit http://www.annuitycampus.com for more annuity information.





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2012年8月26日 星期日

Single Premium Annuities - 2 Types


Single premium annuities are some of the most popular annuities in the world. All annuities will allow a policy owner to at least purchase these programs in one lump sum or rollover amount. A potential policy owner can purchase either an immediate annuity or choose many of the deferred annuities that are on the market.

Single Premium Immediate Annuities

These policies are designed to give the policy owner income. Typically the income usually begins 30 days after the policy issues. Immediate annuities give the owner a variety of income options. You can choose monthly, quarterly, or annual income payments. The policy owner can also choose the length of their payments.

Life Only- (Income for as long as you live)

Life with a period certain- (Example, 10 years plus life)

Single Premium Deferred Annuities

Deferred Annuities are designed for people who do not want to be taxed on money they are not using. These policies will still allow for liquidity should the owner need money and these annuities also allow you to annuitize or take payments similar to immediate plans. The 3 types of single premium deferred annuities are:

Fixed Annuities

Fixed Indexed Annuities

Variable Annuities

Two Phases

There are two phases to deferred annuities. They are the accumulation phase and the distribution phase. During the accumulation phase, your money and interest is growing on a tax-deferred basis which means taxed diminished. Deferred policies are the most popular annuities in the world. The policy owner has many different types of fixed, indexed, and variable annuities to choose from and these policies offer many different riders and terms that are attractive to the public.

All deferred annuities will the owner to take money as income from their annuities, this is called annuitization. Annuities have been around for 100's of years and they all are designed like a pension plan, they pay you an income you can never outlive. Most deferred annuity owners do not plan on taking money from their annuity, however they sleep better knowing that if a financial occasion arises, they can access they account.

Liquidity

Single premium deferred policies are very liquid. Most of these plans allow for interest only withdrawals. Indexed and variable policies allow for penalty free 10% free withdrawals from the contracts each anniversary year. As mentioned before, the policy owner can also choose an income for life and annuitize their annuity contract.

Avoid Probate

All annuities and life insurance policies avoid probate. When the owner(s) pass on, the proceeds will be passed on to the beneficiary(s) and cannot be contested.




Visit http://www.annuitycampus.com for more Annuity and Life Insurance Tips and Tricks!

Sign up for our Newsletter and receive a Free Annuity Report. http://www.annuitycampus.com/understanding-annuities-newsletter.html

Call Robert Eldridge for Questions, Quotes, and a Free Consultation 1.800.643.7544 Ext. 1





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2012年8月23日 星期四

The Benefits Of A Flexible Premium Deferred Annuity


For those who are looking for an insurance based investment vehicle but want one that offers more flexibility than a standard deferred insurance investment vehicle, a flexible premium deferred annuity might be what you are looking for.

Annuities have long been used as investment vehicles for retirement programs. They allow participants to earn interest on the principle amount while deferring the tax consequences until a later date. This allows the money in the account to grow without being taxed, thus increasing the speed in which the investment grows. The insurance portion of the account helps to guarantee that the participant will have an income stream from the account that cannot be outlived.

Defining a Flexible Premium Deferred Annuity

A Flexible Premium Deferred Contract or FPDA is an insurance investment vehicle used for retirement that allows the contract holder to deposit funds on a regular ongoing basis. Unlike a standard deferred one that requires the same amount be deposited each month, a FPDA allows differing amounts to be deposited. In some cases, the amount can be as little as $50. The period in which deposits are required will vary from company to company but are typically monthly, quarterly, semi annually, or annually.

Other Benefits of a FPDA

One of the benefits of a FPDA ensures that the contract holder will receive an amount that will not be less that the total premium.

FPDAs can be used to fund other retirement vehicles that have limited amounts of deposits each year. IRAs, SEPs, and SAR SEPs are examples of qualified (tax deferred) plans that have limits on the amount that can be deposited each year. When the FPDA is beyond the time period in which a surrender charge is required, the policy holder can roll the funds from the FPDA into another qualified plan without incurring negative tax consequences.

Since the funds of an FPDA are guaranteed by the insurance company managing it, the funds are safe and relatively guaranteed to be there for the contract holder when needed in the future. For those who may be looking into diversifying their retirement portfolio and want something more secure than the typical bond fund, an FPDA may be worth investigating. An FPDA is considered one of the most secure and low risk retirement investments by many investment advisers.

Most FPDAs allow contract holders access to their funds if they take an early retirement without assessing surrender charges provided the contract holder has met certain requirements. If the contract holder has had the FPDA for at least five years and has attained the age of fifty-nine and one-half there is not a surrender penalty associated with the FPDA.

Finally, investing money to grow at a tax-free rate is a huge benefit for any investor. An FPDA will allow for the tax deferral of all gains on the contract until the time of withdrawal. This allows the account balance to grow at a faster rate than if capital gains tax were to be assessed each year at tax time.




Visit http://www.annuitycampus.com for more Annuity and Life Insurance Tips and Tricks!

Sign up for our Newsletter and receive a Free Annuity Report.
http://www.annuitycampus.com/understanding-annuities-newsletter.html

Call Robert Eldridge for Questions, Quotes, and a Free Consultation 1.800.643.7544 Ext. 1





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2012年8月22日 星期三

What is Single Premium Deferred Annuity (SPDA)?


A single premium deferred annuity, or SPDA, is a fixed annuity that you buy with a single premium. You get a guaranteed interest rate for a specified period of time, and the taxes on the interest you earn are deferred until you make a withdrawal.

Who would want to buy an SPDA?

Anyone who wants to let his or her money grow risk-free while deferring income taxes on the earings portion of his or her account, with the goal of creating income later in life, may choose an SPDA. Many people enjoy the idea of a fixed interest rate that will remain in effect for a specific period of time, typically from one to seven years. In most cases, the longer the guarantee, the lower the interest rate. This type of annuity is most easily compared to a certificate of deposit at a bank. In both cases, you get a guaranteed rate for a prescribed period. In an annuity, you incur surrender charges if you take your money out, and in a CD you are faced with a three to six month early-withdrawal penalty. The difference, however, is that with a certificate of deposit, you will be paying taxes each year on the interest you earn, even if you don't withdraw it. With the SPDA, you will nor pay taxes until you make a withdrawal.

You might consider an SPDA if:

Your goal is to invest money with minimal risk and you are attracted to vehicles such as CDs and Treasuries; and

You know you are not going to need any of the money you're investing until after age 59.5 and

You do not need current income but will need income sometime after age 59.5 and will be in an equal or lower tax bracket; or

You are already 59.5 and older, you need current income, and the SPDA you are considering offers a guaranteed five-year interest rate that is higher than the interest on five-year CDs and Treasuries.

In summary, there is one set of circumstances in which I would definitely advise you to consider an SPDA. If your goal is to have income during your retirement years, but you don't want to take any market risk with your capital, and you want to avoid paying taxes now but are not in a high enough tax bracket for municipal bonds to make sense, and you believe that you will be in a lower tax bracket when you entire, then an SPDA may be a great investment, regardless of your age.

I also recommend an SPDA when someone is under age 59.5 and needs to take SEPPs, substantially equal periodic payments, for income (payments you can take without paying a 10 percent IRS penalty tax).

What should I watch out for when shopping for an SPDA?

You should check to be sure the insurance company issuing the annuity is safe. And this is very important, ask about the interest rate being offered, the period of time during which the interest rate will be guaranteed, and the surrender period stipulated by the contract. Ideally, the interest rate should be good one, and the period for which the rate is guaranteed should be at least as long as the surrender period. (In other words, if the interest rate is 7 percent and the contract has a five-year surrneder period, the company should pay you 7 percent for all five years.) If you are offered an attractive interest rate for a guaranteed one-year period but the surrender period goes on for seven years, please be wary. Even if the first-year rate is outstanding, in the absence of a longer guarantee you are taking a big risk as to what the interest rate will be for the second year, the third year, and so on. Many companies sucker you in with a good first-year rate and then lower it considerably in the remaining years. Finally, ask how the company sets its renewal interest rate, if applicable, or do some checking on your own. That way you know exactly what you are getting.

How can I check on a company's renewal rates?

Ask to see the history of renewal rates for older SPDA policies that the company has in force. If the company tends to lower the interest rates on policies as they get older, chances are good it will reduce yours, too. Make sure you compare the company's renewal rates in previous years to the rate on Treasuries and CDs for the same years. The way, you'll know whether it make sense for you to purchase a particular SPDA.

Can I annuitize my SPDA?

Yes, although it might not be wise to do so. Insurance companies that offer annuities tend to use different annuitization factors when annuitizing--that is, when calculating how much to pay on a monthly basis over your life span. If you're looking for income from an annuity, it would be best to find out which companies are offering the best annuitization rates and/or to buy outright an immediate, or income, annuity. Typically, the annuitization rates offered by SPDA contracts are not as advantageous as those offered by immediate annuity contracts, and even immediate annuity rates vary from company to company.




You can buy SPDA after paying single premium as an immediate annuity with best rate, For free booklet on SPDA & Annuity Rate visit at:
http://www.single-premium-deferred-annuity.com/ & http://www.immediate-annuity-rate.com/

Annuity Zing provide solutions to buying a Single Premium Deferred Annuity, that is a fixed rate annuity, with a guaranteed interest rate for a specific period of time. Annuity Zing helps you to find better options to buy an SPDA with immediate annuity rate for retirement investments.





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