Annuity Calculation
Most people don’t consider regular deposits to a savings account or monthly home mortgage payments as being annuities, but they are because of the basic definition of annuity. Read More…
Archive for February, 2010
Immediate Fixed Annuity
An immediate fixed annuity has been called the classic annuity because a person begins to receive periodic checks after the first month of investment. Hence, immediate means it starts in a relatively short period of time and fixed means the check will be the same amount every time. Read More…
Annuity Taxation
It is in this phase that income taxes will be due on every annuity payment the annuitant – the person receiving the payment – receives. If the payment is made as a lump sum, then income taxes will be due on the difference between the amount paid into that annuity and its value when it is paid back.
How Equity Indexed Annuities Work
An equity-indexed annuity is an annuity that is different from a traditional interest bearing annuity. An equity-indexed annuity earns its interest by being linked to a stock or other equity index. Read More…
Annuity Investments
Basically all you do is invest a single or series of payments into the annuity investment. The company, in return, will pay you an income that starts on a specific date and lasts for a specific term. Read More…
Annuities Pros And Cons
Given this is true what are the pros and cons of annuities? First, if a person is looking for a lifetime income, an immediate annuity contract is their ticket to that income. Immediate annuities guarantee periodic payments to the annuitant for as long as they live. Read More…
Bonus Annuities
Annuities have been a viable product since the 1600’s when they were created. In the ensuing 400 years, annuities have undergone a number of changes. The latest addition to the family of annuities is called a Bonus Annuity. As the name implies, this is an annuity that pays a bonus. Read More…
No matter the number, i.e. 5%, 6%, 7% or whatever, the contract dictates how the money will be applied to the contract. Because interest rates change over time, the insurance company will guarantee their rates for only a specific period of time. Read More…
Annuities are meant to be long term investments to meet retirement needs or other long range goals. This is one reason why annuities can prove to be a valuable element in funding retirement plans. Read More…
Income annuities are just that. Annuities providing the contract owner, commonly called annuitant, monthly income. As it turns out, income annuities are also called ‘single premium immediate annuities’, ‘immediate annuities’ or ‘payout annuities’. Read More…