An annuity is a financial product that can provide a steady stream of income over a period of time, typically for the remainder of an individual’s life. Annuities are often used in retirement planning to provide a source of income after an individual has stopped working. However, annuities can also be used as part of … Read more
Annuities are excellent financial planning vehicles. However, when funds are withdrawn, the taxation of a non-qualified annuity is different then other financial investments. Here are some tips to consider. Funding: Qualified annuities are often funded with pre-tax dollars, so all of the funds removed from the annuity will be taxable as ordinary income. Roth IRA … Read more
Non Qualified Annuity vs Qualified Annuity Most annuities are technically non qualified annuity contracts, but if they are used to fund a qualified annuity account, they become qualified and any additional funds that are added must also be qualified. What exactly does qualified mean? Qualified annuity funds are funds that are placed in an Internal Revenue Service … Read more
Equity Indexed Annuity Is the equity indexed annuity the best investment in today’s economic environment? Let’s analyze the most important investment attributes. Yield: Most equity indexed annuities pay a bonus of 6-10% on the initial amount invested. After that, the returns are tied to the performance of an index like the S&P 500 or the Dow … Read more
What You Need to Know About Inherited Annuity Options An inherited annuity is an annuity that has been purchased by someone other than you, such as your spouse or child. The reason that the annuity is being passed on to you is because it has a death benefit that can be used for your funeral … Read more
Fixed Annuities A fixed annuity is an investment product that pays out a regular income. The amount of the income can be adjusted each year and it is guaranteed for life. There are two types of fixed annuities: immediate and deferred. Immediate annuities begin paying the investor the first day they are purchased, while deferred … Read more
The index annuity has several moving parts which can have an effect on the return. It is important for the owner to understand these parts, how they move and the effect they can have on an annuity. The moving parts consists of caps, asset fees, participation rates and methods of interest crediting. 1. Caps The cap is … Read more