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Guaranteed Variable Annuities Explained

Like all annuities, guaranteed variable annuities represent a contract between an individual and an insurance company. In exchange for providing the insurance company with a specific amount of money, paid either as a single premium or multiple premiums over time, the insurance company ...

Understanding Annuity Company Ratings

Annuity company ratings are the opinions of the agencies that rate creditworthiness. The four largest credit rating agencies in the United States today are A.M. Best, Fitch, Moody’s Investors Services and Standard and Poor’s. These four agencies rate the financial status of ...

Selecting an Appropriate Annuity Type

Selecting an appropriate annuity type based on the age of the investor varies. However, certified financial planners and accountants usually agree that between the ages of 45 and 55 is the optimal point at which to purchase an annuity. An annuity, combined with other retirement accounts, ...

Why are Annuities Popular

Older investors in particular are drawn to annuities. Annuities are popular among this group because they can provide a guaranteed income stream for life, along with a guarantee of principle. For older investors who don't have large retirement accounts, the threat of outliving their ...

Where to Buy Top Variable Annuities

Variable annuities were introduced in the early 1950’s as a way for people to achieve greater rates of return while enjoying the guarantees and tax advantages offered through fixed annuities.  Their popularity reached its apex during the bull markets of the 1980’s and ...

Single Life Annuity

The fundamental premise of an annuity is its promise to pay a guaranteed stream of income for a specified period of time or for the life of the annuitant. Just as the government of ancient Rome used annuities to provide financial security for its citizens and soldiers, today’s life ...

Top Retirement Planning Mistakes

In recent years the vast majority of Americans have learned a very hard lesson, and that is that if they are going to be able to retire on time and in a manner in which that have envisioned, it will be up to them to ensure that it happens.  No longer can people simply ride the economic ...

Where to Find Top Fixed Annuities

With an increasing number of investors adopting a more conservative approach to long term savings and investments, the fixed annuity market is beginning to heat up. As the stock market continues to bewilder and spook investor of all types – young, old, novice and experienced – ...

Monitoring Your Annuity After Purchase

Annuities offer many unique features and benefits along with guarantees not found in other investment or savings vehicles. As such they can be somewhat complex involving many moving parts that must work together so that they can perform as expected. On the surface, the expectation of an ...

Alternatives to CDs

Bank CDs have been garnering more attention these days, not so much for their yields, which are somewhat unspectacular in this low interest rate environment, but more for their value as a safe haven from the ravages of a volatile stock market. But investors are experiencing CD shock which is ...

Annuity Help

For centuries annuities have been the vehicle of choice for people who are looking for a way to secure their capital and provide a stable, long term income for their retirement.  They have come a long way in terms of the benefits and amount of security they provide, and, at the same ...

Indexed Annuities Pros and Cons

Indexed annuities are often referred to as "hybrid annuities." They are a relatively new type of investment product. Introduced by several insurance companies in the late 20th century, they contain parts of fixed and variable annuities. Like fixed annuities, indexed annuities will ...

No Surrender Annuities

An annuity surrender charge is the amount the insurance company charges an annuitant if he or she withdraws more than the specified amount during a given time period. Most annuity contracts allow the annuitant to withdraw earnings or an amount worth up to 15% of the premium without a ...

Fixed Annuities Pros and Cons

Fixed annuities represent a contract between an individual and an insurance company. Annuities provide a contractual way for an individual to guarantee that he or she receives income for life. Other financial products like equities that pay dividends can also provide income. But the income ...

Fixed Tax Deferred Annuities

Fixed tax-deferred annuities are those on which a guaranteed amount of interest is paid regardless of market conditions and taxes are not paid on the earnings until distributions are paid out or the annuity is surrendered. If an annuity is fixed, it means that the insurance ...

No Load Annuities

An investment that charges a load is simply charging a sales fee. The fee can be an upfront fee, meaning that it is charged when the investor purchases the investment. An investment that charges an upfront fee is called a "front loaded" investment. If the investment is "back ...

Annuities Good or Bad

An annuity as an investment isn't in and of itself good or bad. It can, however, be an appropriate or inappropriate investment for a particular individual. Like all investments, annuities come in many shapes and sizes. There are fixed annuities that pay a set amount of interest each ...

Single Life Annuity

A single life annuity is simply an annuity, either deferred or immediate, that is owned by one single individual. It is not owned jointly between a husband and wife. With most single annuities, the payments end upon the death of the annuitant. However, there are a number of options for ...

Annuity Definition

At its most basic, an annuity is a contract between an investor and an insurance company. The investor gives the insurance company either a lump-sum premium, which is also known as a single premium, or he or she provides multiple premiums over time. The time during which he or she makes ...

Annuities Pros and Cons

Fixed annuities pay a fixed rate of return on the premium. The most popular type of fixed annuity is called an immediate fixed annuity. Immediate fixed annuities are funded with a single premium. They are usually purchased with cash from a savings account, the death benefit from a life ...

Is an Annuity For Me

The best age at which to purchase deferred annuities will vary for each annuity investor, but financial advisors generally agree that between 45 and 55 is optimal. Combined with other retirement investments, the compounded tax-deferred earned and the guarantee of a lifetime income stream can ...

What Are Bonus Annuities

Bonus annuities are fixed or variable annuities that offer the buyer a bonus rate on top of the regular return. The life insurance company that sells the bonus annuity will typically contribute an additional 2% to 10% of the first year premium, regardless of the rate of return. In other ...

What are Annuity Riders

Annuity riders are like any other rider that can be attached to an insurance or financial product. Just as a rider that protects valuable diamond jewelry can be attached to a homeowner's insurance policy, a rider can be attached to an annuity to protect its value above and beyond the ...

Secondary Market Annuities Explained

The secondary market for annuities is a relatively recent development. A number of firms have been established for the sole purpose of buying long-term annuity contracts. This market gives an annuity contract owner the option to sell the contract for cash, without paying surrender fees to ...

What is an Annuity Death Benefit

Some insurance companies sell annuities that have a guaranteed death benefit. Other companies sell the death benefit as a separate rider. Either way, the death benefit is considered to be an important feature of an annuity. While some insurance companies structure the death benefit ...

Revocable Living Trust Info

Everyone should have a will that communicates their intentions and desires for how their financial and personal affairs should be handled upon their death. But when you absolutely, positively want your assets to be there for your survivors when they need them the most, you should consider a ...

Annuity FYI

Much has been written on annuities over the last couple of decades, yet they remain largely misunderstood by most people and, even some financial planners.  Between the promotion hyperbole of annuity sellers and the unconstructive criticism of some celebrity financial pundits, the ...

What is a Ratchet Annuity

Annuities have been a fixture on the investment landscape for centuries.  Once seen as a simple contract between a person looking for a lifetime income stream and an entity that promises one in return for a monetary commitment, annuities have evolved into complex instruments that have ...

Annuities Are Sleep Insurance

When you ask annuity owners why they purchased their annuity, the answer often involves one of the many benefits that they offer: Tax deferral, safety, access to funds, guaranteed principal, and lifetime income stream.  But if you then ask them what having those benefits really means to ...

Annuities vs Stocks

Annuities and stocks don’t typically come up in the same conversation. They are polar opposites as investment types and they don’t share many characteristics which would lead one to conclude that they really can’t be compared together as in “annuities vs ...

Are Annuities Safe

Annuities have long been considered the safe investment alternative especially for people who are most concerned about securing their retirement income.  Life insurance companies have been issuing annuities since the 19th century. Since then, even during times of the most difficult ...

What Are Split Annuities

Annuities have provided pre-retirees with a safe and secure retirement solution for generations.  Deferred annuities have been a solid way to accumulate retirement assets on a tax deferred basis, and immediate annuities are still considered to be the soundest way to generate a ...

Benefits for Annuity Owners

Annuity owners have sometimes been characterized as cautious, conservative, risk averse and, in some cases unsophisticated, yet they may very well have the last laugh once all of the benefits of annuity ownership are realized.  Frankly, there is no other investment vehicle that provides ...

FDIC Insurance Advice

With the recent surge in bank failures, the subject of deposit insurance has, once again, become foremost in the minds of most people. It is probably a good time to revisit the FDIC (Federal Deposit Insurance Corporation) and what it is intended to do. Also, there have been changes made to ...

An Explanation of Immediate Annuities

The recent, historic declines in the financial markets have caused millions of prospective retirees to reevaluate their retirement plans with most having to either delay retirement or find other means of meeting their retirement income needs. It has come to light that many of these ...

Rates for Fixed Annuities

Fixed annuities have regained their prominence as a secure retirement vehicle that can see people through volatile markets and uncertain economic conditions.  As such, there is a renewed interest in the rates for fixed annuities and how they are determined.  When people move money ...

Variable Annuities for Dummies

Variable annuities are contracts between an investor and an insurance company. Variable annuities are investment products, not life insurance products. The contract outlines the type of payment or payments the investor will make to the insurance company. These payments are called the ...

The History of Annuities

There are very few financial instruments with as long and rich a history as annuities.  For as big a role they play in present day personal finance, it may surprise many that annuities trace their history as far back as the days before Christ when Roman culture and armies dominated the ...

Are Annuities Right For Me?

Implicit within the question, “Are annuities right for me?” is the common sense realization that annuities aren’t for everyone which is true for just about any investment.  And, you are not likely to get any argument from financial planners on that note.  In the ...

Estate Planning Tips

Throughout our lives we save, accumulate assets, make hard financial decisions and, some day, hope to end up with an estate big enough to nourish our retirement, and, if we do a really good job, be able to leave a legacy for our children. That's the mindset of most Americans and, yet, ...

An Explanation of Variable Annuities

With the responsibility for achieving financial independence resting more squarely on the individual's shoulders, it would be important to take a closer look at this unique, multi-tasking retirement vehicle. The best way to understand how a variable annuity works is to begin with an ...

Pre Retirement Fixed Annuities

Fixed annuities are a cornerstone of retirement plans for millions of pre-retirees, and, as people climb out from underneath the rubble of their decimated 401(k) plans, they are being considered by millions more as way to lock in some stability during turbulent times. Even as fixed ...

Who to Get Indexed Annuities From

Annuities are a practical solution for people who are seeking  a secure retirement as they are the only investment vehicle that can provide a guaranteed stream of lifetime income.  For people who have lost their tolerance for risk, fixed annuities, with their minimum rate ...

Annuities for Credit Protection

People buy annuities for their protection. They can protect your principal against market loss. They are favored for their protection against taxation, and they provide protection from expensive and time consuming probate proceedings.  Annuities have long been thought of as safe havens ...

Manage Your Annuity

One of the advantages of owning an annuity is that they are fairly tightly wrapped with all of the  pieces tucked in place so, it would seem, that there isn’t much to do after purchasing one.  After all, there’s a competitive fixed interest rate, a return of principal ...

Annuity Death Benefits

Annuities are popular for many of the attractive benefits they offer.  Most annuity owners purchased their annuity for the tax deferral of accumulated earnings.  Many annuities are purchased because of the safety features and income guarantees.  Interestingly, the one key ...

Taxation and Annuities

The popular axiom, “Nothing is certain except death and taxes”, has become a rallying cry for our tax adverse society to the point where most people spend a great deal of their time trying to avoid both.  People who buy annuities may very well be challengers of both death ...

Annuity Beneficiary Help

Annuities have long been the preferred investment vehicle for people who seek the peace-of-mind of a secure, lifelong income stream.  For many annuity owners, buying an annuity is a straight forward process facilitated by a high quality life insurance company that allows them to buy it ...

Annuities for the Upper Class American

Annuities offer many benefits for the upper class American retirement saver. From tax-deferred growth to guaranteed income for life, annuities offer several advantages as part of an upper class American’s portfolio. Even upper class entrepreneurs and business owners who have access to ...

How do I Buy a Fixed Annuity

The basic concept and structure of fixed annuities hasn’t really changed since they were first introduced in this country two centuries ago. While the concept of an annuity  remains simple, its structure is somewhat more complicated than that of other fixed yield vehicles.  ...

Top Local Immediate Annuities

The wild stock market roller coaster ride has left many people nauseas and unable to tolerate its steep drops and twisting turns. As a result, secure retirement vehicles such as immediate annuities have seen resurgence as people look for more stability and predictability for their retirement ...

When Should I Get a Variable Annuity

For many people today, the retirement dream is has become a nightmare. Having to cope with intolerable market volatility, economic uncertainties and, for some, the prospect of lower earnings expectations, planning for retirement is more of an exercise in survival as opposed to preparing to ...

What is an Indexed Annuity

Like all annuities, an indexed annuity is a financial contract between an investor and an insurance company. When an investor purchases an indexed annuity, he or she is obligated to leave the money in the annuity for the length of the contract. The issuer is then obligated to make payments ...

How to Find a Good Annuity Broker

If you are thinking about purchasing an annuity you need to find a good annuity broker. This should be someone who is an expert on annuities. The annuity market has expanded quite a bit in recent years. There are a lot of new features to understand, that a qualified annuity broker would be ...

Deferred Annuity Quotes

Before we discuss the ranges in today’s deferred annuity quotes, we should first understand what a deferred annuity is.  When annuity contracts came into existence many years ago, they were basic plans where the purchaser deposited a lump sum of money with the insurance company in ...

How to Purchase Life Annuities

When you have made the decision to purchase a life annuity you need to take the time to do your homework on annuities.  Don’t just rely on someone to sell you on one.  The more information you have when making your choice the better your results will be.  This article is ...

Variable Annuity History Revealed

Before we talk about the variable annuity history we should understand what a variable annuity is. A variable annuity is a contract between an investor known as the annuitant and an insurance company whereby the annuitant agrees to pay in periodic payments over a number of years or to pay a ...

What is a Deferred Annuity

A deferred annuity is an investment contract between an investor and an insurance company in which both taxes and the distribution of payments are deferred until a later point in time. Deferred annuities can either be fixed or variable. The rate of return on a deferred fixed annuity is set ...

Future Value of an Annuity

Finding the future value of an annuity is not a calculation best left to financial advisors.  Any time an individual makes a payment on a loan, a lease, life insurance, credit cards, or even rent, mathematical formulas to find the future value of an annuity could be used to understand ...

The Key to Finding Top Deferred Annuities

Deferred Annuities have always had appeal as a long term, retirement planning vehicle. Their popularity reached a peak during the high interest rate and high tax rate environment in the 1980’s. Today, they remain an attractive alternative for investors who seek stability and ...

Why Should I Buy an Annuity

Throughout history, at least as far back as Roman times, annuities have provided a solution for anyone who sought the security of an income that they could not outlive.  When you consider that today’s life expectancy is nearly three times that of a Roman citizen, the idea of a ...

An Explanation of Fixed Annuities

As usually happens after steep market declines followed by periods of uncertainty, money takes a flight to safety where it moves into secure and stable investments. The problem is that the flight is taken only after the damage is already done.  Then, when it is certain that it’s ...

How to Find Top Indexed Annuities

Annuities come in different flavors and, depending on which you choose, they may or not be suitable for you if they don't meet your preferences for risk or your financial requirements. Stealing an analogy from a children's story, one annuity may be too hot (risky), while another one ...

Why Buy Immediate Annuities

In light of the recent turmoil in the financial markets, pre-retirees are facing some difficult choices as they approach retirement.  Many pre-retirees have relied upon the forces of the market to put them in a position to retire on time with enough assets to generate the income they ...

Guaranteed Annuities, Guaranteed Income

Investing in annuities is a strategy for building guarantees into a portfolio in addition to future income. Insurance companies offer annuity contracts, thus can design such accounts to ‘insure’ against certain risks. These protections provide peace of mind as well as enable ...

Variable Annuity: Riders Worth Considering

Variable annuities have really come full circle, and the evolution has proven to be a valuable investment tool for many retirees. There is tremendous variety available with a number of strong and reputable companies; all offering a full array of RIDERS (added benefits to your annuity ...

Annuities for the Middle Class American

Income annuities are immediate annuities suitable for the middle class American, as they provide a specific, guaranteed amount of income. While most middle-income people consider annuities to be more investment products than insurance products, annuities should be considered as a way to ...

Advice on Fixed Variable Annuities

What are fixed variable annuities?  Well to start out with fixed annuities are those contracts that provide a fixed rate of return with no market volatility of the principal. The annuity is invested in securities that will not fluctuate in value with the value of the underlying ...

Details on Lifetime Annuity Costs

When you are shopping around for the best annuity to purchase, you need to understand the costs and expenses you will encounter before you start.  If you are purchasing a fixed annuity as compared to a variable annuity, the costs will be different.  Variable annuities usually have ...

Income Annuity Quotes

If you are currently looking for income annuity quotes, you may be disappointed to know that your options are fairly limited. Interest rates around the world are at the lowest levels available in years. If you want a guaranteed rate on your annuity you may be able to lock in a rate of 3% ...

Fixed Annuity Examples

Fixed annuities have been offered in one form or another for generations.  The underlying premise of the fixed annuity – safety of principle, stable, fixed rates of return, guaranteed income and tax deferred growth – has made it a mainstay of retirement planners for decades. ...

When to Buy a Deferred Annuity

With more people reevaluating their retirement plans in the face of uncertain economic conditions, the deferred annuity has risen on the radar of planners who have suddenly become more concerned about the return of principal rather than the return on principal. The rush to move money out of ...

Helpful Annuity Advice

Annuities have long been established as an effective means for securing a lifetime income stream while protecting principle and, in the face of increasing market volatility and economic uncertainty, they remain popular today. Because the annuity purchase is a long term commitment, choosing ...

The Key to Buying Fixed Annuities

There are literally hundreds of fixed annuities, of all shapes and sizes, on the market today which complicates the already daunting task of making the right investment choice  for your long term security.  The key to buying fixed annuities is to narrow down the choices quickly so ...

Retired Veteran Annuities

Since the days of our founding, military veterans have been considered one of our country’s true treasures and a reminder that men and women have unselfishly served to protect the liberties we cherish.  Veterans benefits have been a part of the country’s way of thanking ...

Variable Annuities for the Family Man

For today’s family man, making the right financial decisions is more critical than ever. It’s no longer enough to follow the prescribed formulas for building a sound financial plan. Planning for the future in the face of uncertain economic conditions and volatile markets requires ...

Ordinary Annuity Guide

An ordinary annuity is considered by most people to be a fixed annuity. A fixed annuity is one that pays a fixed amount of earnings regardless of the performance of stock or bond markets. The fixed amount varies depending on the insurance company that issues the annuity, but is usually ...

Choosing Between Deferred and Immediate Annuities

Like all annuities, a deferred annuity represents a contract between an insurance company and an investor. In exchange for providing the insurance company with the premium, the insurance company agrees to pay the investor a specified amount of money at some point in the future. Taxes, ...

Fixed Annuities for Dummies

Fixed annuities are a contract between an investor and an insurance company. They provide a contractual way for an investor to ensure that he or she receives guaranteed income for life. Other investment products, such as stocks that pay dividends, can also supply income. But, they are not ...

Thoughts on Variable Annuities

Since their introduction in the late 1940’s, variable annuities have had a fairly colorful history.  Along with the heaps of praise they garnered during the stock market bull runs they have also amassed a fair share of criticism especially during market declines.  At the ...

Why Buy Fixed Over Immediate

The decision as to which kind of annuity, fixed or immediate, to purchase is based largely on the specific need or goal that needs to be fulfilled.  In certain situations, a combination of both could provide the right solution. The answer, in any case, requires an understanding of the ...

Where to Get Top Deferred Annuities

During the Great Depression, when it became more difficult for people to deposit lump sums of money into a fixed annuity, life insurers responded by introducing a variation called a deferred annuity. For people who were concerned about their future security, annuities have long been viewed ...

An Explanation of Retirement Annuities

The history of annuities can be traced back to Roman times when, as a means of raising money to fund wars, the government would promise a lifetime of payments in return for deposits from citizens and soldiers.  Annuities, as secure retirement vehicles, rose to prominence during the ...

Annuities for the Average Person

For the average person trying to plan for the future, the proliferation of financial products, information, and companies competing for your savings dollars has left them confused and bewildered to the point of paralysis.  The idea of venturing into the storm of volatile financial ...

Fixed Annuities for Single Women

As the retirement dream continues to inch outside of the reach of more and more people, single women find themselves especially challenged to achieve meaningful financial independence for their golden years. Although times have changed and, along with it, the negative income disparity ...

How Annuity Payments Work

An annuity is a financial contract between an investor and an insurance company. The investor gives the insurance company a specified amount of money in exchange for guaranteed payments. Annuities can either be deferred, meaning that taxes on the earnings along with the distribution of ...

Annuity Factor Method

For people who need to begin receiving distributions from qualified retirement accounts prior to age 59 ½, the Internal Revenue Service has established sections 72(t) and 72(q) to allow for penalty-free early withdrawals. Investors who take distributions prior to age 59 ½ are ...

Annuity Purchase Advice

There are two kinds of annuities: Deferred and immediate. Deferred annuities are purchased with earned income and have an accumulation phase that can last for several years, and in some cases, decades. The money used to make the purchase can either be qualified, meaning that it has not yet ...

Annuity Companies: Finding the Best One

Annuities are offered by insurance companies, both large and small. There are a number of things to consider when searching for a quality company with which to invest hard earned dollars. The following questions shed light on important points to consider when shopping ...

Income Through Annuities

Annuities are versatile investment vehicles with income-producing potential. There are three types of annuities, all of which have similar features but are much different investments. Additionally, there are four general methods for accessing the funds within an annuity. In any case, ...

Annuity: Not a Bad Word

The term ‘annuity’ has really come to have a bad reputation. The truth is that annuities have an important place as a component of the financial plans for many families. Unfortunately, over the years these types of accounts have often been misrepresented and misused by poorly ...

What is an Index Equity Annuity

There are annuities that provide a fixed rate of return where your principal investment will be held steady. This is called a fixed annuity.  Rates are usually very low but the risk of principal loss is not a factor with these annuities.  Another type of annuity is one where the ...

Fixed Annuity Fees Explained

Before we delve into the details of fixed annuity fees, we will first talk a little bit about what exactly a fixed annuity is.  A fixed annuity is when a person deposits a set amount of money with an insurance company for the promise of a set future stream of income.  The person ...

Variable Annuity Death Benefits

In looking at variable annuity death benefits we should first do a review of what a variable annuity is.  A variable annuity is a contract that a person purchases from an insurance company.  The insurance company in effect promises to pay you periodic payments for the rest of your ...

Equity Linked Annuities

If you’re considering investing in an annuity but you can’t decide between a fixed rate annuity or a variable annuity, you may be a candidate for an equity linked annuity.  Most people know this annuities by the name Equity Indexed annuities.  Equity linked annuities ...

How to Find the Best Rates on Annuities

Annuities are contracts sold by insurance companies to guarantee a steady stream of retirement income to the purchaser.  They can be a variable annuity, which means that they are invested in the stock market and the rate of return is not guaranteed.  They can be a fixed rate ...

Top Variable Annuities

Annuities are contracts sold by insurance companies that guarantee a lifetime income to the purchasers for a set payment.  The payment can be a single payment or a periodic payment. Variable annuities can be described as annuity contracts with variable returns. The returns are pegged to ...

What is a Structured Annuity

A structured annuity, also known as a structured settlement or a periodic payment judgment, is an annuity or group of annuities with a very short accumulation phase funded by a lump sum payment similar to a single-pay annuity. It is typically funded by an insurance company or other third ...

Annuity Retirement Planning

In addition to providing a death benefit, annuities can be an important part of any retirement plan. Even so, there are a myriad of ways to set them up. In order to determine how best to use annuities to best fit an individual situation, it is important to know the main differences between ...

401k Annuity

What is a 401k Annuity The 401k – sometimes styled 401(k) – is a qualified retirement plan first offered in the United States in 1978. Although originally intended for senior level corporate executives, over time it became popular among individuals of all income ...

Taxation of Annuities Explained

Many people know that annuities are tax deferred investment vehicles that allow them to accumulate returns on their money each year without having to claim taxes on the returns. This is the major benefit of a tax deferred annuity.  If you have a long period of time to build your assets ...

Joint Life Annuities

In order to explain joint life annuities we must first understand what an annuity is.  An annuity is a contract usually offered by an insurance company whereby they promise to pay a lifetime income to the annuity purchaser for a set initial premium.  If it is a single premium ...

Annuities Explained

Many questions and misinformation exist regarding annuities. Even annuity owners may not fully understand what type of account into which they are invested. Though modern annuity contracts can be very complex, the nuts and bolts of all annuities are similar. Regardless of exposure to annuity ...

Variable Annuity Life Insurance

Variable life insurance is a type of permanent life insurance. Like all permanent life insurance products, it has two parts: The death benefit, which is the amount of money paid to the beneficiary when the policyholder dies, and the built-up cash value account to which interest is credited ...

What are Charitable Gift Annuities

A charitable gift annuity (CGA) is a type of charitable donation known as planned giving. The charitable gift must be made to a verified non-profit 501(c)(3) charity. This type of organization is exempt from both state and federal taxes. In exchange for a one-time lump-sum premium, the donor ...

What are Retirement Annuities

Retirement annuities are one more option an individual investor has for saving for retirement. Retirement annuities function similarly to a traditional individual retirement account in that they grow tax-deferred while the investor is able to contribute earned income. But instead of an ...

Lump Sum Annuity Investment

One choice for generating retirement income is to invest in a lump sum annuity, or immediate annuity. Though a lump sum can be invested and the income stream deferred, typically the income stream trigger will be pulled immediately after investing the money. The culmination of lifetime saving ...

How to Purchase Annuities

When considering an annuity investment for a portfolio, there are some steps that should be followed to get the most out of your account. Annuity contracts have become very complex and diverse, offering a wide range of investment choices and riders to protect income, assets, and family. ...

Pros and Cons of Annuities

Anyone that has walked into a bank to renew a certificate of deposit has probably had some exposure to an annuity presentation. Bankers have been pitching fixed annuities as a ‘tax deferred alternative’ to CD’s for many years now. This unfortunate situation has somewhat ...

Income Annuity Guide

An income annuity is an immediate annuity that provides a specified amount of income. It is a contract between the annuitant and an insurance company that is most often purchased with one lump sum, as opposed to monthly or annual contributions made over time.While most people consider an ...

Qualified vs Non Qualified Annuities

Financial planners and investment advisors, along with the Internal Revenue Service, make a distinction between non-qualified annuities and qualified annuities. Investors, however, are sometimes confused as to what determines whether the funds used to purchase an annuity are non-qualified or ...

Indexed Annuities and Their Benefits

Unlike other retirement investments that can yield dramatically reduced returns if the market to which they are tied drop substantially, indexed annuities offer equity-like results without the potential for huge losses. The rate of return on an indexed annuity is most often tied to the ...

The Single Premium Annuity

A single premium annuity is purchased with a one-time payment. Whereas an investor may have the option of purchasing an annuity through monthly contributions to an employer sponsored retirement plan, a single premium annuity is purchased directly from an insurance company or investment ...

Buying an Annuity: Five Points to Consider

While an annuity can be one of the most advantageous financial products an investor can choose to provide guaranteed income in retirement, he or she would be wise to consider five key points before committing to an annuity. Because an annuity represents a contract between the investor and ...

Taxation of Annuities

The taxation of annuities depends on two criteria: First, whether the annuity is purchased with qualified or non-qualified money, and second, whether the annuity is deferred or immediate. Qualified money is almost always used to purchase a deferred annuity. Non-qualified money is more likely ...

What is a Deferred Annuity

A deferred annuity is an investment contract between an investor and an insurance company in which both taxes and the distribution of payments are deferred until a later point in time. Deferred annuities can either be fixed or variable. The rate of return on a deferred fixed annuity is set ...

Investing in Fixed Income Annuities

Fixed income annuities can provide financial security and stability for those nearing retirement or who are already retired. When an investor purchases a fixed annuity contract from an insurance company, the premium is most often placed in ultra-conservative mutual funds. The payments ...

Annuities and Retirement

Annuities have a role to play in most retirement plans, that role is to protect families from outliving the assets they have spent a lifetime accumulating. Though the term ‘annuity’ may have a negative connotation, in fact annuities can provide guarantees and peace of mind to ...

Annuity Products Reviewed

Annuity products are offered by several of the largest and most trusted life insurance companies in the United States. But understanding the differences among the many companies and the annuity products they offer can be a challenge. For an investor looking to purchase an annuity, the first ...

How to Find a Great Annuity Advisor

Finding a great annuity advisor is similar to finding a great investment advisor: He or she must always act in the client’s best interest and provide honest advice that is best suited for an individual investor’s specific circumstances. He or she should also be able to provide ...

What is a Variable Annuity

A variable annuity is a long-term investment product sold by an insurance company. It differs significantly from other investment products because an annuity is a contract between the purchaser of the annuity, who is the annuitant, and the insurance company.  The annuitant agrees to ...

The Best Age to Purchase an Annuity

While the exact best age to purchase a deferred annuity will be different for each annuity investor, financial planners generally agree that between the ages of 45 and 55 is optimal. Combined with additional retirement savings vehicles, the compounded tax-deferred interest earned and ...

Charitable Gift Annuity Guide

Although annuities are customarily issued by insurance companies, there is nothing to prevent any company or individual from issuing one. An excellent example of this is the charitable gift annuity (CGA), an annuity issued by a charity to a donor in exchange for a gift to the ...

Your Annuity Options

By definition, retirement is the time of life when you stop earning income and start living off your assets. Because you are utterly dependent on those assets, you must strive to make them as secure as possible. This entails guaranteeing both the stock of wealth that the asset controls and ...

How Life Expectancy Impacts Retirement Planning

Increases in productivity are responsible for increasing living standards over the last few centuries. In turn, productivity is enhanced by improvements in technology, which enable us to produce more output from the same number of inputs. Technological innovations can take various forms ...

What Most People Don’t Know About Annuities

What most people don’t know about annuities would fill a book. That is because annuities are contracts that contain many features, benefits, and costs. Rather than attempt an encyclopedic recitation, this article will focus on basic elements of annuity structure that are not well ...

Annuitization Explained

Annuitization is the process of converting a capital sum into a level, regular stream of payments. In practice, annuitization is normally synchronized with retirement, although this is not invariably true. By definition, retirement signals the end of earned income. The retiree will need to ...

Best Investments for Estate Planning

In an economic system undergirded by the principle of private property, the primary purpose of investment is to benefit the investor. One option available to the owner of property, however, is to pass it along to survivors via bequest. Since a bequest is intended to benefit people other than ...

Biggest Annuity Investment Mistakes

Investments are like medicine. They are rarely good or bad per se. Instead, people may pick the wrong kind or the wrong amount for their particular circumstances. In this respect, annuities are like other investments. They have beneficial features and drawbacks. They are ...

Expected Rates of Return on Retirement Investments

In retirement, we expect to live on the wealth we have accumulated throughout our working lives. We do that by withdrawing wealth for current consumption, to replace the flow of earned income that dried up with retirement. The size and duration of these withdrawals depends on two things ...

When to Purchase Annuities

Few topics in finance preoccupy the general public more than when to purchase assets. Popular wisdom envisions investment success as knowing when to buy and (although this gets less attention) when to sell. In fact, this mentality is suited for trading, not investment. Few people possess the ...

Split Annuity Guide

A split annuity is an investment strategy that involves simultaneously purchasing at least two annuities with a single premium payment. As this definition shows, the term “split annuity” is something of a misnomer, since it doesn’t represent one single annuity but rather ...

Retirement Income Sources

Almost all Americans will receive income from multiple sources in retirement. All income sources are not created equal. Each source has its own advantages and disadvantages. There are two dimensions to consider when gauging the value of a retirement income source – vertical and ...

Are Annuities a Good Investment?

Every financial professional periodically faces the following question: Is X a good investment? X may be stocks in general or a particular stock; bonds in general or the debt of a particular company or government; a real asset such as gold or real estate or Egyptian ceramics; or a ...

Present Value of an Annuity

As originally defined, an annuity was a level stream of payments to an individual, lasting for the duration of the individual’s lifetime. The term “present value” denotes the technique for calculating the present worth of values received in the past or future (or both). ...

Retirement and Capital Gains Tax

Retirement and capital-gains taxation are a matched pair of discussion topics. One study finds that retirement capital gains comprise nearly one-quarter of retirement income. This contrasts with a total of less than 10% for the general population. A capital gain is realized upon ...

Buy an Annuity

Time was when the financial world was neatly compartmentalized and access into and between the different compartments was strictly limited. If you wanted to buy insurance, you called up a particular insurance company and made an appointment with a representative, who came to your home. You ...

How to Select a Great Insurance Company

What makes for a great insurance company? To students of business history, a great insurance company is one with a long history of successful operation, a tradition of innovation, and the ingrained habit of serving their customers well. Several U.S. companies fit this description, with ...

Retirement Planning Essentials

Professional financial planners interview their clients carefully in order to tailor a plan to their specific needs. It is not possible to design a “one-size-fits-all” plan for retirement. Still, fundamental principles of economics and finance permit a skeletal framework for ...

Pension Annuity

The words “pension” and “annuity” are both sometimes used to describe the same financial arrangement – a stream of money paid regularly to somebody who is no longer employed and lasting for the lifetime of the recipient. The words are also used to denote the ...

How Deflation Affects Your Retirement

The words “deflation” and “retirement” are seldom uttered in the same sentence – or even in the same context. ...

Annuity State Guaranty Coverage

Unlike bank deposits and CDs, annuities are not covered by federal (FDIC) insurance designed to protect consumers from the consequences of the issuing company’s insolvency. Insurance companies are regulated at the state level, however, and each state has a guaranty fund intended to ...

Single Premium Deferred Annuity

A single premium deferred annuity is a contract between an individual and an insurance company in which the individual provides funds that are invested and later used as the basis for lifelong distributions to the annuity holder. Along with the single premium immediate annuity, the single ...

Common Retirement Investment Mistakes

Economic theory and logic tell us that we cannot reliably predict either stock-price movements or overall economic performance. Retirement investment strategy should focus instead on eliminating avoidable mistakes. Some of these are common enough to deserve special ...

Variable Annuity Types

Discussions of variable annuities generally involve comparison with other investment products, such as mutual funds. This is necessary and valuable, but the implication is that differences in variable annuities themselves are unworthy of consideration. That is untrue; differences among ...

IRAs vs. Roth IRAs: Which to Choose?

The Roth IRA is a particular type of Individual Retirement Account (IRA) that takes its name from its legislative sponsor, the late Sen. William Roth (R-Del.). The Roth IRA differs in important ways from a traditional IRA. Either type of IRA might be chosen by the investor, depending on ...

Retirement Investment Instruments

The defining feature of retirement is the end of income from full-time work. This is the one constant in retirement, unchanging from start to finish. We may associate retirement with old age, uncertain health and flagging vigor, but the fact is that age, health and vigor may vary across a ...

Reverse Mortgages: Pros and Cons

The United States has been the source of most of the world’s financial innovations over the last half-century, including index funds, junk bonds, financial derivatives, and many more. The life cycle of these products often follows a curious path. The products begin as designs on a ...

Annuity Advice

The recent worldwide financial crisis and accompanying recession have wreaked havoc on the portfolios of countless investors. In addition to the visible changes, this steep and prolonged downturn has also changed the attitudes of investors. First-hand experience with the volatility of equity ...

Structured Settlement Annuities

Structured settlement annuities are specialized annuities issued by insurance-company affiliates to compensate plaintiffs in personal-injury tort litigation. They are the artifact of two institutions: the court system and the tax system. Prior to 1982, personal-injury plaintiffs ...

Tips for Selling Your Annuity

In the classic sense, annuities are intended to be terminal vehicles. That is, they are inherently designed to provide guaranteed income for life and cease operating only upon death of the annuitant(s). Annuities are retirement-oriented financial instruments, geared toward the final phase of ...

Annuity Investment Risks Overview

Annuities are contracts between individuals and insurance companies. Annuities are investments that also possess various insurance features. The purpose of insurance is to reduce risk. Thus, the association of annuity investment with risk may seem anomalous. In fact, risk is omnipresent and ...

How Inflation Impacts Your Retirement Savings

Inflation is traditionally defined as a concurrent increase in the prices of all or most goods. This is unlike ordinary circumstances, in which price increases for some goods are offset by decreases in others. A sustained inflation must be the result of an increase in the supply of money ...

How Annuities Handle Disability and Long Term Care

Annuities are retirement-oriented contracts between insurance companies and individuals. The nature of their commitment demands that insurance companies exert control over the funds entrusted to them. They do this by levying surrender charges on the full or partial withdrawal of funds by ...

Index Annuity Crediting Methods

Since their introduction in late 1995, indexed annuities have enjoyed great popularity. Like there fixed counterparts, indexed annuities credit holders with an interest return. This rate is not fixed according to a period stipulated in the annuity contract. Instead, it is tied to a financial ...

Retirement Planning

The stage when retirement planning shifts into high gear is perhaps the most crucial time in the individual’s financial life cycle. It begins between the ages of 45 and 55, roughly a decade before the planned retirement date. The individual is entering his or her peak earning period; ...

Benefits of Equity Indexed Annuities

In the last 15 years, equity-indexed annuities have become a popular addition to the roster of annuity products. They offer a solid list of benefits to prospective purchasers. These benefits more than offset the complicated mechanics and ground rules of this asset. ...

Annuities and IRAs

Annuities and IRAs are both retirement-oriented investment entities. Both offer favorable tax treatment to owners. Both subject owners to penalties for premature withdrawals. Despite these similarities, the two are fundamentally different things. Outlining these differences helps ...

Mass Mutual Annuities

Mass Mutual Financial Group is one of the world’s leading providers of insurance and financial services. From its inception in the mid-19th century, it has remained a mutual insurance company, owned by its participating policyholders. It enjoys the distinction of having paid dividends ...

How to Choose a Financial Advisor

The reason why modern economies are so much more productive than ancient and medieval ones is because specialization is more highly developed. We don’t grow our own food, make our own clothes, build our own houses, or attend to our own medical needs. Most of us don’t even change ...

Variable Annuity Comparison

Much time and effort has been spent comparing variable annuities with other financial instruments - particularly mutual funds, which they closely resemble. Much less time has been devoted to comparing variable annuities with each other. Presumably, this is because the mistake of choosing the ...

How to Save for Retirement

When people save for retirement, what action contributes the most to their success? Casual observation suggests that most people consider the selection of investments and the amount saved to be paramount. This is wrong. To see why, consider ...

Genworth Life and Annuity

Genworth Financial Group is an international financial-services company headquartered in Richmond, VA. The company was spun off from General Electric Financial in 2004 in an initial public offering that raised about $2.8 billion. At that time, this was the14th largest IPO of all time. A ...

Single Premium Annuity

Annuities provide retirement income in the form of payments from insurance companies to annuityholders in return for premiums paid to the companies. Annuity contracts specify the amount, frequency and duration of payments from annuityholders to insurance companies. Usually the payments ...

Retirement Investment

In former times, an article on retirement investment would have been short and simple: “Shift everything to cash and conservative, fixed-income securities.”  Advances in medicine, nutrition and fitness have lengthened life expectancy and changed the perspective of investing. ...

Tax Sheltered Annuity

A tax-sheltered annuity (TSA) is an investment vehicle that allows an individual to make pre-tax contributions to a retirement account. Original TSA participants were restricted to annuities in their choice of investment instruments. Today the name is a misnomer because the menu of ...

Fidelity Annuities

Fidelity Investments is a financial services company that began in 1946 as a mutual fund company. Today, Fidelity Management and Research LLC (headquartered in Boston) owns and manages mutual funds throughout North America and is the world’s largest mutual fund company. As of September ...

Annuities for Dummies

An annuity is a contract between an individual and an insurance company. The individual pays the insurance company money, either in a lump sum or regularly over time. The money is invested. When the individual retires, he or she begins receiving regular payments from the insurance company. ...

Annuity Contracts

Annuities have a reputation for being complicated financial instruments. This is not unjustified, but the features and details inside annuity contracts are there for a reason. Each one enhances a particular investment or insurance benefit. Since the annuity holder pays for those benefits, it ...

Fixed Annuities vs Bonds

A fixed annuity is a contract between an insurance company and one or more individuals, in which individuals make premium payments over the course of an accumulation period. The insurance company invests the premiums, then uses the investment proceeds to make distribution payments to the ...

Lincoln Annuities

Lincoln Financial Group (the marketing name for Lincoln National Corporation) is a full-service financial company offering insurance, investment and fund management services. Its headquarters are in Radnor, PA. It offers annuities through its affiliates, the Lincoln National Life Insurance ...

Variable Annuities vs Mutual Funds

Variable annuities have much in common with mutual funds. In many respects, variable annuities can be described as mutual funds wrapped up inside an annuity contract. Since variable annuities and mutual funds are popular investment vehicles chosen by millions of people, both their ...

Annuity Regulation

No topic is more current in financial circles these days than regulation. Consequently, it is logical for would-be buyers of annuities to wonder how and by whom these products are ...

Annuity Investment Tips

An investor who goes shopping for annuities for the first time might stop dead in the middle of the financial-products store, paralyzed by confusion and indecision. The imposing array of products, housed in colorful packaging with complicated wording and directions on the back of each box, ...

Aviva Annuities

Aviva is an international financial group, based in Great Britain, who specializes in long-term savings, fund management and general insurance. It is the 5th-largest insurance concern in the world, serving 50 million customers and employing 54,000 people in 28 countries throughout Europe, ...

Insurance Annuities: Protecting Your Retirement

Today the word "annuity" refers to an investment contract between an insurance company and one or more individuals. Originally, however, the word denoted the stream of lifelong payments from insurance company to annuity holder that ...

1035 Exchange

A 1035 exchange is an exchange of similar insurance-related assets. The purpose of the exchange is to avoid taxes that would be due if the insurance consumer redeemed one asset, then purchased the other one in two separate transactions. The term gets its name from Section 1035(a) – (d) ...

Single Premium Immediate Annuity Guide

Dating back to the beginnings of annuity contracts, the single premium immediate annuity is the simplest, most basic of annuity products. Its uses are many, its drawbacks few – yet today it is overshadowed by its more colorful and complicated relatives, the deferred annuities. It ...

Equity Indexed Annuities Made Clear

Equity indexed annuities are investment contracts between insurance companies and individuals. The investment returns on these contracts are closely tied to returns on an index of equity (stock) prices. The most popular index employed by equity indexed annuities is the Standard & ...

AXA Annuities

AXA – Equitable is the U.S. arm of AXA Group, a French company whose holdings comprise the 15th-largest company in the world, according to the 2007 Fortune Global 500. In 1991, AXA Group acquired a controlling interest in The Equitable Life Assurance Society of the United States, known ...

Life Insurance Annuity Coverage

Annuity contracts are agreements between individuals and insurance companies, in which individuals pay money to the companies in exchange for the promise of lifelong income. Annuity contracts very commonly include a provision for payment to a beneficiary or beneficiaries in the event that ...

Understanding Annuities

There are many different annuity products on the market. The key step in understanding annuities is in grasping the underlying principles of the annuity concept.  Annuity products can be divided into three groups. The three basic types of annuity share a common structure: the holder ...

Annuity Rollovers Overview

In financial parlance, a rollover has two common meanings, one general and the other specific. It can refer to the reinvestment of funds upon the maturity of an asset, such as a CD or a bond. More specifically, it can refer to reinvestment of funds that have been removed from a qualified ...

Allianz Annuities

Headquartered in Munich, Germany, Allianz SE is the holding company for a worldwide financial colossus of insurance, banking and asset management. Its operations extend to over 70 countries and employ over 182,000 people. In 2008, Allianz SE earned 92.5 billion DM in revenue (over $140 ...

CD Annuities vs. Fixed Annuities

A new annuity wrinkle is the CD annuity, a type of fixed annuity with a superficial resemblance to a bank CD. What is it? How does it differ from the traditional fixed annuity? How does it compare to a bank CD? For what class of investor is ...

Variable Annuity Investment Tips

Variable annuities are currently riding a wave of popularity, notwithstanding that variable annuity investment is reputedly complicated and difficult. Fortunately, the principles of efficient shopping can also apply to variable annuity investment. If there is one thing that Americans know ...

Annuity Funds: Distribution Types

The word annuity refers to the payment of money over time, but it has come to be associated with the insurance contract of which the distribution of annuity funds is the concluding feature. Since the contract takes its name from those money distributions, it is appropriate to examine their ...

Pacific Life Annuities

Pacific Life Corp. today ranks as one of America’s leading financial and insurance operations, with over $96 billion in assets and over $5 billion in policyholder equity. It is a mutual insurance holding company, owned by its policyholders, which boasts over half of America’s 100 ...

Define Annuity Contracts

An annuity contract involves one or more people and an insurance company. The universal common feature of annuity contracts is the option of the holder or holders to receive assured lifelong income in the form of regular payments from the insurance company. The source of these payments is ...

Annuity Insurance: Securing Your Retirement

Annuities are contracts between individuals and insurance companies. For the purpose of securing their retirement, individuals provide investment funds to the companies, who provide the means to enlarge the funds over time. When the individuals retire, the companies distribute income back to ...

Nationwide Annuities

From its start in 1925 as the Ohio Farm Bureau Mutual Auto Insurance Company, the Nationwide Mutual Insurance Company has grown into one of the leading insurance and financial firms in the world, with over $160 billion in assets. Nationwide sells automobile, motorcycle, boat, homeowners, ...

Retirement Annuity Guide

Retirement planning covers the time leading up to retirement, the conclusion of work and the years spent in retirement. Annuities can play an important role at each stage of the process. An analogy illustrates the role played by investments ...

Prudential Annuities

Prudential Financial is America’s third-largest issuer of advisor-sold variable annuities.  It is number 84 on the Forbes 500 list of the largest firms in the U.S. and number 74 on the Fortune 500, with a market value exceeding $9 billion. It is an affiliate of the Prudential Life ...

Top Annuity Companies

Annuities typically contain a death benefit, a key feature of life insurance contracts. Consequently, it is not surprising that annuities are offered by insurance companies. When shopping for annuities, don’t focus only on the annuity product itself – the credited interest rate ...

What Is An Annuity?

The word annuity refers to a regular stream of level payments, whose duration may be specific or indefinite. In the United States, the word has come to be identified with multi-purpose insurance contracts terminating in a payment stream. This makes it logical to ask: What is an annuity ...

Tax Deferred Annuity Advantages

As its name implies, the biggest advantages of the tax deferred annuity derive from the privilege of tax deferral. The ability to invest money and have the gains compound tax free is a powerful tool for building wealth. The three basic types of annuities share a common structure: the holder ...

Immediate Annuity Quotes Online

When you know you need a steady source of income to meet future financial hurdles, like retirement or paying for a child’s college tuition, an immediate annuity offers benefits like no other investment vehicle.. If you have a single large sum of money from the sale of a house, a bonus ...

Best Annuity Investments in this Economy

The American economy has begun showing its first faint signs of recovery. Leading financial analysts agree that long-term economic indicators hit their bottom and turned back upward in November of 2008; short-term indicators bottomed and began showing modest gains in February of 2009. ...

Income Annuities Investment Tips

Ideal for rollovers of other retirement investments, income annuities turn savings into steady, secure income. Income annuities supplement Social Security, pensions, and other retirement income while allowing the original investment to continue earning tax deferred. The best income annuities ...

Single Premium Annuity Rates Explained

If you have liquidated an individual retirement account, received either a large bonus or a considerable severance package, or in any other way come into possession of a large lump-sum, consider investing it in a single premium annuity. By far the best way to secure a large sum of money, a ...

Top Annuity Interest Rates

Although they become complex, sophisticated investment instruments, annuities still run on common sense: longer and later are better. The longer the insurance company can invest your money before disbursing it, the later in your life you allow the company to keep your money, and ...

Buy Annuity: The How To Guide

Some financial planners and investment brokers discourage their clients from considering annuities, arguing they are too complex, cumbersome, and conservative.  They especially caution that interest penalties and fees for early withdrawal may negate the entire annuity’s growth. ...

Comparing Lifetime Annuities

In the search for the best investment vehicles to secure your retirement, it quickly becomes apparent that each investment product has its own special vocabulary, host of options, and caveats. Becoming reasonably fluent in these options will mean the difference between a comfortable and ...

How to Compare Annuities

Annuities come in many distinct flavors, designed to meet a wide variety of retirement and financial planning goals and satisfy various risk levels. To choose an appropriate type for you, ...

Immediate Annuity Rates Explained

By far the safest, most reliable wealth-management tools, immediate annuities begin paying regular benefits within thirty days of purchase. If circumstances have left you in possession of a significant lump sum, a fixed immediate annuity ...

Fixed Index Annuity Investment

What is a fixed index annuity? In order to really make sense of a fixed index annuity, we need to take it apart and then put it back together.  The basic concept is not difficult, but a fixed index annuity has quite a few “moving parts”—terms and ...

How Do Annuities Work?

How do annuities work – and what do they mean for your  financial situation? Annuities can be an effective insurance investment for you  and your family. However, just like any other financial choice, a wise investor  should research annuities and see how they work to ...

Hartford Annuities: Shopping by Carrier

Hartford Life Annuities offer many benefits. These include  tax-deferral, a guaranteed death benefit, and a lifetime income. The Hartford  Life Annuities available have two phases, ...

Investing in Fixed Equity Indexed Annuities

Fixed equity indexed annuities have become one of the latest  investing choices in the last fifteen years. Built as an investing vehicle that  can provide a greater return than a traditional fixed annuity, fixed equity  indexed annuities are often a smart investing choice for ...

Lump Sum Annuity Guide

An annuity investment can be a great choice for individuals  looking for ways to enhance their retirement options. However, if you have invested in an annuity or inherited an annuity recently, you might have recently realized that you need more cash than what your monthly allowance is ...

Pacific Life Annuities: Shopping by Carrier

Pacific Life and Annuity Company offers a variety of annuity  plans. Pacific Life annuities are chiefly of the variable type, and the company  provides seven different variable annuity plans and only one fixed annuity  option. The Pacific Life annuities are the Pacific ...

Annuity vs IRA

Retirement investment decisions have become increasingly  complex as fewer employees are covered by traditional, employer-sponsored  pension plans. The shift to 401(k) plans has presented new retirees with  difficult choices, including the annuity vs IRA decision. When ...

Annuity Formula Explained

The easiest way to deal with an annuity formula is to use an annuity calculator to determine the amount of money you’ll receive based on investments made over time. However, it’s a good idea to understand the annuity formula used by the calculator in order to have a better idea of what ...

New York Life Annuities: Shopping by Carrier

New York Life focuses on life insurance and annuities. Its retirement savings product line includes fixed, deferred, immediate, and variable annuities, with several life insurance hybrids. Unlike other insurers, New York Life has maintained top-notch security ratings amid the '08 financial ...

What Are Annuities?

The question that comes to mind when you first hear about adding annuities to your investment portfolio is “what are annuities?” The short answer is that annuities are agreements between two parties in which one party provides a “stream” of payments – a series ...

Annuity vs CD: Fixed Income Options

Are you looking for the best places to put your money for your retirement? For some investors, the debate will be between putting their money in a CD (certificate of deposit) versus a fixed annuity. The debate of the annuity vs CD is best determined with a thorough analysis of your ...

Variable Annuities Pros and Cons

No investment product has created as much controversy or spawned so much division as the variable annuity. Since its introduction in the early 1980s, it has gone through periods of tremendous popularity and relative neglect. A sizable body of literature, both technical and popular, has ...

AIG Annuities: Shopping by Carrier

AIG annuities are available through three companies. AIG Annuity is a subsidiary of AIG that deal primarily in fixed rate annuities while SunAmerica offers variable annuity products. The AIG Annuity Insurance Company is the top issuer of fixed ...

Annuity Payment Calculator Guide

There are several types of annuity payment calculators, each designed for slightly different annuities. The Immediate Annuity Calculator below can be used to determine monthly payouts for a single premium immediate annuity (SPIA). The Future Value Annuity Calculator can be used to determine the ...

Common Annuity Questions Answered

If you are thinking about planning for retirement, you probably have many annuity questions. ...

ING Annuities: Shopping by Carrier

ING specializes in retirement investments and life insurance. ING offers a range annuity products, including fixed, variable, equity index, and immediate. ING also offers universal, term, and variable life insurance policies. ING annuities are diverse, with the firm itself noting: the ...

Retirement Annuity Rates Online

Retirement annuities are generally those obtained through a pension plan provided by an employer to provide monthly payments for life or a non-qualified annuity product bought by an investor from an insurance company with after-tax dollars in exchange for monthly payments over a specified ...

Metlife Annuities: Shopping by Carrier

Metlife — full name: Metropolitan Life — offers a wide assortment of financial and insurance products, including mutual funds, annuities, estate planning, education planning, and portfolio management. As far as annuities products, Metlife deals in all types, including fixed, ...

Advantages of Fixed Rate Annuities

Fixed rate annuities offer a host of advantages over interest-based and equity-based vehicles. CDs, bonds, and mutual funds have their upsides, but often pale in comparison to a quality fixed annuity. Chief of the advantages offered by fixed rate annuities are: tax-deferred growth, higher rates ...

Annuity Ratings: Finding the Best Annuity

Annuity ratings are an important factor in finding the best annuity plans. It’s vitial to your retirement that the insurance company backing the annuity contract is financially sound and stable enough to meet its obligations.Annuity ratings are provided by several professional ...

Free Annuity Calculators: Where to Find Them

One of the great things about the Internet for people who are interested in annuity plans is that you can find a number of free annuity calculators online. In most cases, the free annuity calculators found on the web make certain assumptions about withdrawal rates and timing of ...

Best Variable Annuity Choice

All large insurance firms provide their own brand of variable annuities, and plans labeled “best variable annuities” by one insurer can differ significantly from another. In part, this is because variable annuity plans are brought to market in order to keep up with the rate of inflation. ...

How Does An Annuity Work?

The first question you’re likely to ask yourself when entering the annuity universe is how does an annuity work? The answer to this question depends on the type of annuity program you select. There are generally three broad categories of annuity, each working a bit differently: fixed, ...

Annuity Purchaser: What to Look Out For

Once the decision to buy an annuity is made, the annuity purchaser needs to understand the fundamentals of the different annuity plans. And as an annuity purchaser, you also need to be aware of the specific factors that will impact your annuity ...

John Hancock Annuities: Shopping by Carrier

John Hancock deals in a wide variety of fixed and variable annuities products, life insurance, 401(k)s, mutual funds, pension management services, and college saving plans. The majority of John Hancock's business involves structured settlements ...

Finding the Present Value Factor of an Annuity

Finding the present value factor of an annuity involves calculating compounding interest over a given number of years based off a desired end-goal. An annuity calculator can be used to find the present value of a fixed annuity by entering an interest rate, the number of years will be ...

Finding High Interest Annuities

High interest fixed annuities are a refuge from the uncertainties of the equity market because their rate of return is guaranteed, and often beats CDs and money market accounts. When looking for high interest annuities, expect to examine not only fixed annuities, but also ...

The Best Annuity Type

If you are ready to choose an annuity plan, you want to select the best annuity type available. However, it pays to make your decision on the basis of what the best annuity type is for your particular situation. Different kinds of plans are appropriate in difference ...

Annuity Quotes Online

One of the most important matters to consider when thinking about buying an annuity is getting the right information. Good annuity quotes will act as  summaries of  individuals' investment profiles over a period of time. Annuity quotes will also detail the returns they will provide ...

Fixed Annuities: Guaranteed Retirement Income

Fixed annuities provide guaranteed retirement income and are typically favored by individuals who either have already left the work force or who are nearing retirement. The guaranteed retirement income results from the fact that fixed annuities  give their owners - who are called ...

Tax Deferred Annuity Benefits

A tax-deferred annuity allows individuals to save for their retirement with pre-tax contributions. The contributions to a tax-deferred annuity are usually taken directly from employees' salaries, thereby reducing current taxable income. Investors do not pay taxes on their contributions or their ...

Why Annuities are Safer than Stocks

When looking at annuities as retirement vehicle, it's important to ask if annuities are safer than stock. And the answer is yes! There are two types of annuity we should consider:Fixed Annuities: These are unequivocally safer than a stock market investment because they ...

A History of Annuities

Annuities in RomeMany people today make use of annuity as for retirement, but it is not a new instrument. Back during the time of the Roman Empire, citizens could obtain what was known as an annual stipend, or annua. In exchange for a one-time disbursement to the annua, the ...

Sources of Retirement Income

As people approach their retirement, the need to maintain a reasonable level of income during their retirement turns into a real concern. It occurs that one needs a reasonable and steady stream of income if they are to maintain the standard of life they had been accustomed to during their ...

Annuity Pros and Cons

Like all financial products, annuities come with pros and cons which everyone getting into them should be aware of. Starting with the pro side, the main advantages attached to annuities are the financial security and tax deferment features they offer, which we will briefly ...

Using Present Value Annuity Tables

When analyzing your annuity plan, you should consider the time-value of money, or its present value and future value. A present value annuity table is a useful shortcut for computing the current value of your annuity plan. A present value annuity table can also be used to determine the future ...

An Annuities Explanation

It is easy to become confused about the exact nature of annuities. Explanations of annuities tend to focus on the types available, without providing an overview of the plans.  In general, a bank’s Certificates of Deposit are similar to annuities. An annuities explanation follows, ...

Differences Between A Fixed and Equity Annuity

When considering the difference between a fixed and equity annuity, investors should remember that equity annuities, also called equity-indexed annuities, ARE fixed annuities. Both the fixed and equity annuity are designed for conservative investors, but equity annuities can provide ...

Finding the Best Annuity Rates

Annuity plans often start out with a good interest rate, but then that rate tends to decrease after the plan's first year ends. To find the best annuity rates, investors must shop around. In fact, it is even possible trade in under-performing annuities for plans with the best annuity rates ...

Annuity Rates Comparison: What to Look Out For

When considering the purchase of an annuity plan, investors must make a careful annuity rate comparison. It has become relatively easy to perform an annuity rate comparison because of the availability of online tools and annuity information websites. Insurance firms continue to offer new types ...

Equity Annuity Primer

In this equity annuity primer, you'll learn what you need to know about equity-indexed annuities, a relatively new form of annuity plan designed to combine features of stock investment plans and those of traditional fixed annuity plans. The equity annuity primer will discuss the nature ...

Can Annuities Outperform Stocks

Annuities are generally considered to be safer than stocks as retirement investments, but their safety comes at a price - relatively low investment returns. Conventional wisdom has it that annuities cannot outperform stocks in a growth market, but is this true. The new equity-indexed ...

Fixed Rate Annuity: The Lowest Risk

The fixed rate annuity plan offers the lowest risk of any retirement savings option. With a fixed rate annuity plan, a guaranteed rate of return is locked in for a specific period of time, usually from one year to ten years. While the return rates may fluctuate over that period, they will never ...

Equity Annuities: Managing Retirement Risk

Equity annuities offer a good avenue for managing retirement risk because they provide the potential for a good return without the potential losses of principal associated with traditional investments. Equity annuities invest most of their premiums into a fixed annuity, with the rest placed ...

Annuity Investment Risks

Annuities have often been marketed as good investment vehicles for risk-averse investors, like retirees and other people who can’t afford to gamble with their money. Annuities work such that the annuity holder makes a payment or a series of payments to the company offering the ...

How Annuities Work

Annuities have lately become some of the most popular investment options available to many people, especially among retirees and people who are prudently preparing for their retirement. An annuity can be described as an arrangement in which the annuitant (the person taking up the ...

Annuities Vs CDs

When it comes to choice of low risk investments that offer a reasonable return, many people find themselves torn between ...

The Benefits of Owning a Fixed Annuity

There are fixed and variable annuities; and which you choose depends on several factors. First off, a fixed annuity has (as its name implies) a fixed rate of return. So, you know exactly what you’re going to get for your money. If you’re older and want to be more conservative in your ...

Top Mistakes of Annuity Owners

Annuities are an excellent means of investing for the future, but there are some things to ...

Annuity Taxes Made Easy

The subject of annuity taxes can be confusing and loaded with jargon. But there is a simpler way to approach annuity taxation, based on the fact that the way an annuity is taxed depends primarily on the type of annuity in question. And since there are only two major types of annuities, it ...

Finding The Best Annuity

The most important step in finding the best annuity is understanding why you'd want one in the first place. Annuities are good investments, but not ideal for everyone. Annuities are designed for retirement saving and involve long terms and disincentives for early withdrawals, similar to a ...

Retire Early With Annuities

Did you know that you can earn an early retirement through annuities? Retirement in this context refers to the attainment of such a degree of financial independence that you don’t have to work again. It is the stage at which the stream of income coming from your ...

Immediate Vs. Deferred Annuities

Annuities are financial products, usually offered by insurance companies in which the annuity holder pays an amount of money to the company offering the annuities, which in turns invests the amount and guarantees the annuity holder a stream of income for the rest of his life, or up to an agreed ...

Fixed Rate Vs. Variable Annuities

Annuities are insurance products in which the annuity-holder makes a payment or a number of payments to the company offering the annuities, in exchange for a guaranteed stream of income for the rest of the his or her life or up to a pre-agreed expiry date of the annuity. Based on their ...

Annuity 101

If a person has a lot of money and decides not to spend it, there are ways of making this grow. One option is keeping it in the bank and letting it grow interest. The other is investing it in the stock market with the help of a financial consultant. This professional will be able to know ...

Annuity Basics

Annuities can be very good things for some of us and a disaster for those of us who have not been made aware of the pitfalls and traps that in turn can easily befall them. Since most people have or are going to look into annuities as a retirement or and an investment vehicle, make sure it ...

Buy Retirement Annuity

Buying an annuity is linked with a person’s age. When the investor is young the expectations are more. Since the investor is employed or running own business, the risk factors take a secondary position. However, when a person is about to retire, the earnings become as vital as the ...