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2012年9月26日 星期三

3 Types of Special Usage Annuities


There are multiple books that have been written on special usage annuities and I will briefly go over the 3 most common used strategies for each.

Charitable Gift Annuity

In a charitable gift annuity a donor gives a gift to a legitimate 501(c)(3) charities in exchange for a lifetime income to the donor. Usually the income goes directly to the donor is set up 100% joint and survivor to the owner and the spouse. This agreement is between the charity and the donor of the gift.

The donor or donors can make a donation to the charity with cash or other types of securities. There are a lot of charities that will not take real-estate as a donation because of an incident a few years back regarding the Boy Scouts. A donor gave the charity some property and the property was contaminated and the charity was stuck with the cost of the clean up. I do not of one charity that will act as a 3rd party who will take the hard assets and they will be liable for any cleanup prior to giving the property to the intended charity.

Structured Settlements

A structured settlement is ordered by the courts because of a personal injury lawsuit. The injured party (plaintiff) agrees to receive a systematic series of payments over a lifetime or for a certain amount of years. The courts like this avenue for children or for incompetent people who will not be able to properly manage a large sum of money.

Split Annuities

A split annuity is not an annuity at all. A split annuity is a concept consisting of multiple annuities. They are structured where one annuity will make payments over a period of time while the other annuities growing to restore their original principal at the end of that time period. The owner splits their money into multiple insurance carriers. The split consists of an immediate annuity and maybe one or two more deferred annuities. Once the immediate annuity is over, the deferred annuity is placed into another immediate annuity and the process starts all over again.

The advantage of a split annuity is reliable income and that your money will last. Because you are also using different time periods, you can enjoy rising interest rates in the future and are not stuck will a an immediate annuity that is paying past lower interest rates to you for life.

To find out more about special usage annuities, click on the link below in the resource box.




Visit http://www.annuitycampus.com for more annuity tips and tricks.

Robert 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.





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2012年9月22日 星期六

Different Types of Fixed Annuity and Its Benefits


Spiritual gurus may prophesy to live life in the moment but at times, it is very important to think about the future as well. And one of the most important aspects of future planning is financial planning. In the increasingly volatile world of today it is imperative that we have an assured source of income at retirement or when an economic calamity hits us.

For the daring investors, there is the stock market which can help you make quick money. But for the not-so-daring who are looking for a secure investment is a fixed annuity. This investment option basically gives you interest which is guaranteed by the insurance agency.

Fixed annuity is also at times referred to as tax deferred annuity. Reason being that it delays tax payments on your earnings until you withdraw money from it or start earning an income. This investment option is a great way to secure your retirement plans and gives you a steady flow of money.

A fixed annuity is of different types. They are:

· CD annuity - The certificate of deposit or CD annuity gives you a fixed rate of interest for a specified period of time. The interest rate does not change for the decided time period which is chosen by you at the time of setting up the annuity.

· Traditional Fixed Annuity - As the name suggests, this is the oldest and most popular kind of annuity. In this kind of annuity, the insurance company revises the rate of interest each year at the starting date of your annuity. But you can be rest assured that the revised interest rate would not be less than the minimum rate of interest guaranteed by the insurance company. The minimum rate of interest is clearly mentioned by the company at the time of fixing up your annuity. This kind of annuity is market linked and does have its pros and cons because at times of adverse economic conditions, the interest rate can be significantly lower than that in a CD annuity.

· Immediate Annuity - The name says it all. This kind of fixed annuity does not give you the benefit of tax deferral. Instead, it immediately starts giving you a steady flow of guaranteed income at the outset. This type of annuity is best suited for people who are nearing their retirement and do not sufficient time to build upon their resources with the help of tax deferral. Tax deferral annuities are meant for people who have a long way to go for retirement and can build a substantial reservoir of finances for their old age.

These are the different kinds of fixed annuities. But before you take a pick from the above, make sure that you consult some top notch financial planners to make an informed decision. Most of the times, insurance companies or banks would not tell you what is best for you. Hence, it is always wise to consult an expert before you decide to invest your hard earned money.

Click on the link below to learn more about a Fixed Annuity.




Visit http://www.annuitycampus.com for more Annuity and Life Insurance Tips and Tricks. Call Robert Eldridge directly at 800-643-7544. 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.





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2012年9月14日 星期五

Overview of Annuity Types


In general, an annuity is a contract in which an investor pays a premium or a series of premiums, and in return the insurer makes a series of income payments. Normally, annuities are purchased to secure future retirement income for individuals.

There are three basic annuity types: fixed, variable, and indexed. A particular company may be calling their annuities something slightly different. However, all annuities can be classified into these three types.

Fixed Annuity

Fixed annuities earn interest at a set rate during the accumulation period of the annuity. During the payout period, again, the income payments are made to the investor at a fixed rate. Some investors are confused by the term fixed. The term fixed means that the contract is fixed, but does not mean that the rate cannot change. It only means that the way in which it can change or be reevaluated is clearly spelled out in the initial annuity contract.

Variable Annuity

The second annuity type is a variable annuity. With a variable annuity, the investor's premiums are entered into a separate account. The investor then chooses how the premiums are invested. The majority of variable annuities are setup to invest in mutual funds. However, accounts also exist for stock and bond investments. During the payout period, income payments made to the investor vary in relation to the performance of the separate investment account.

Indexed Annuity

The final annuity type is an indexed annuity. An indexed annuity earns interested based on an external financial index, such as the S&P 500. Interest that is credited to the annuity is based on a formula that is linked to the underlying index. An indexed annuity also is usually guaranteed to pay a minimum interest rate so that investors do no lose their initial investment premiums.

Payout Structures: Immediate and Deferred

Two different types of payout structures exist with annuities - immediate and deferred. An immediate annuity usually has income payments that start no later than one year after the premium is paid. Usually, the premium payment is in one installment. Immediate annuities offer a way for older Americans to have a guaranteed income for life that they can access in the short-term.

The opposite is true for deferred annuities. Income payments often start many years after the premiums are paid. Deferred annuities have the advantage that earnings are automatically re-invested over the accumulation period. Investors that have more time before their retirement can take advantage of these automatic re-investments of earnings. Earnings can also be withdrawn early with deferred annuities, usually up to a certain amount.

In summary, there are three basic annuity types: fixed, variable, and indexed. Each type has its own advantages and disadvantages and appeals to different types of investors. Once the general type of annuity is selected, investors can also chose between immediate and deferred payout structures. As the names suggest, immediate payout structures start quicker than deferred payout structures. However, deferred payout structures offer the advantage that annuity earnings are automatically re-invested during the accumulation period.




For more information from Steven on how to invest in annuities and common investment mistakes, visit his Immediate Annuity Guide. To learn more about securing your retirement with life annuities, visit the Life Annuity Guide.





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2012年8月30日 星期四

The Role of Annuity Tables in Investments and the Types of Tables


The need to invest for future purposes arises out of the uncertainties of life. We never know how long we are going to live or how long our income stream is going to last. This aspect of life is utilised by financial institutions like banks and insurance companies. They offer a wide variety of financial products that give us the option of investing our money for future needs.

One such lucrative financial product in the market today is annuity. An annuity involves the payment of a certain amount of money at regular intervals of time and the payment of interest on that investment by the insurance company at regular intervals of time. One can also opt to take a lump sum amount but usually, taking the lump sum amount is a loss making venture as compared to interest payments. Nevertheless, an annuity is a perfect retirement solution for most people.

However, everybody is not familiarised with the financial products and what returns are expected on a particular type of annuity and this is where annuity tables come in to the picture.

Annuity tables give you a clear picture of what to expect from different types of investment. These tables thus ensure that you select an investment option that is most profitable to you.

Annuity tables are a tabular form or a graphical representation of the expected returns on a particular type of annuity. When these tables are used in conjunction with the market trends, one can form an accurate picture of the expected returns on an investment.

After one gets a clear picture, one can decide whether to go for a long term investment or a short term one. The annuity tables take into consideration various factors before coming out with the outcome on a particular investment. The factors include age, the principal amount, the financial institution etc.

Broadly speaking, there are two kinds of annuity tables- immediate annuity table and deferred annuity table. An immediate annuity table gives the expected income from the investment at different ages of stages of life.

A deferred annuity table gives an approximate idea of return from the investment after a certain length of time because deferred annuity involves a lock in period. But while consulting a table, one must keep a few caveats in mind.

One of the most important things to keep in mind is to make sure that the annuity table is up to date. The interest rates displayed in a table must be current. In case of outdated rates, the table would not be able to give you an accurate idea of your returns which can spell disaster for your investments.

Another thing to keep in mind while consulting these tables is that they come from a trustworthy source. Most of the online sites do not have proper annuity tables and most of them display outdated tables which do not give a clear picture for your investments.

Always make sure that you consult a trustworthy and a reliable source when it comes to deciding on your investments.

Click on the link below to learn more about Annuities.




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

Call Robert Eldridge directly at 800-643-7544.

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





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2012年8月29日 星期三

Types of Deferred Annuity


As we mentioned in other articles, the government only represents about 30% of our retirement income,, the company retirement pension plan offers another 30 % and many of us do not have one. It is up to individuals to invest wisely short and long term in order to make up for the short fall if he or she would like to live comfortably after retirement without giving up some retirement plan. Now you have reached your retirement age, there are some important investment options for your RRSP or 401k plan. In this article, we will discuss characteristics of deferred annuity.

Deferred annuity is a contract that delays payments of income, installments or a lump sum until the investor elects to receive them. This type of annuity has two main phases, the savings phase in which you invest money into the account, and the income phase in which the plan is converted into an annuity and payments are received.

1. Fixed deferred annuity

a) A fixed interest deferred annuity is a product that is designed to help you accumulate funds for your retirement.

b) The money in your annuity earns a fixed rate of interest and the fund in deferred annuity accumulates on a tax-deferred basis.

c) You do not pay taxes on your earnings until you actually withdraw them from your policy.

d) You can choose to lock in your interest rate for different periods in this type of annuity and the money can be used to provide guaranteed lifetime income.

2. Variable deferred annuity

Variable annuities invest in the stock market with the tax advantages and other security including bonds, money market funds. At the request of the annuitant the money can also be used to provide income for the rest of annuitant life.

3. Equity index deferred annuity (EIA)

a) Equity index deferred annuity earns interest based on performance of stock market index such as the S&P 500.

b) An EIA guarantees that your principal investment will not go down in value.

c) In any given year, if the stock market go up, you as owner of EIA will enjoy additional gains. If the index goes down, your principal investment will not go down in value.




I hope this information will help. If you need more information of insurance or series of articles of the above subject at my home page at:

[http://medicaladvisorjournals.blogspot.com]

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/

All rights reserved. Any reproducing of this article must have the author name and all the links intact. "Let Take Care Your Health, Your Health Will Take Care You" Kyle J. Norton I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990. Master degree in Mathematics, teaching and tutoring math at colleges and universities before joining insurance industries.





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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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