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2012年9月20日 星期四

Open The World Of Single Life Annuity To Yourself


Annuities can be described as a financial contract with insurance company that helps people save money for retirement. The money that are deposited into such provisions grow all the time, they are tax-deferred until they are withdrawn that happens generally after the person reaches retirement age. A fund that brings income to the person insured during retirement is called a single life annuity. The one who is insured is called annuitant. Further some information about annuities is provided to those, who search for such financial product.

Different payout options are available in single life annuities. In straight annuities, the money is paid out till the death of annuitant. There is also a possibility to purchase a refund option. According to this, after death of the annuitant, any remaining money in the account will be forwarded to beneficiary, whose name is stated in the contract.

There is an interesting option of these contracts called a guaranteed period or term. Guaranteed term ensures that payments will be made for stated number of years, despite if the annuitant is alive. If he or she will die till the end of guaranteed period, the payments will be made to estate of annuitant or their beneficiary, stated in the contract until the term comes to an end.

Interest earned with the funds is tax-deferred till the time the interest is withdrawn. In the USA, all annuitants that are below age fifty-nine and a half must also pay a penalty tax on funds, that are withdrawn from single life annuity. This penalty tax comes with income tax due on the withdrawal.

In the majority of the cases, a contract can be deferred or immediate. Deferred single life annuities are split into two distinct periods; known as the accumulation and payout phases. First, during the accumulation phase, the funds are deposited into the account where they earn interest over a number of years. After that, throughout the payout period, payments are received by the annuitant. These comprise the principle and accumulated interest earned over the period. The interest portion accumulated is taxed, in accordance with the annuitant's current tax rate.

When purchasing immediate annuities, the holder starts receiving payments from the first year of the contract. The remaining amount earns interest that is tax-deferred. Just like with deferred annuities, income tax on the interest is charged when the interest is withdrawn.

Joint and survivor annuities are more preferred for married couples than separate single life annuities. When purchasing joint annuities, both spouses will receive retirement income payments. Upon the death of the one spouse, the other will receive the remaining value. The payments will be made to surviving spouse during period, specified in the contract.

It can happen that income from an annuity is not needed during the retirement time. Then, couples can use the funds to buy a joint policy. These funds are also subject to income and penalty tax.

If further advice on any financial product is needed, including a single life annuity, it is strongly recommended to take appropriate legal advice. Before signing any agreements it is very important to check the credentials of the all parties involved.




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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