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Testimonials about the Immediate Annuity – What People Are Saying

We have heard enough from insurance agents! Now, it is time to hear what the people – the annuity owners and other investors – are saying.

Several firms specializing on financial planning report that there is a long list of people who had profited from purchasing different types of immediate annuities. It has been reported that for the last ten years, immediate annuities, especially the immediate fixed annuity, have become popular with a lot of investors because of it’s secure, feasible, and reliable investments.

Investors react to immediate annuities differently. Some of them agree that it can be a secure, reliable, and feasible investment. On the other hand, some people argue that it is not a profitable investment tool. These differences in opinion are, of course, a result of their different experiences with the annuity. Let me give you a brief summary of the discussions, testimonials, reviews, and comments about immediate annuities that I came across on the most powerful technological invention on communication – the internet or the World Wide Web.

Those who consider the immediate annuity as a secure, feasible, and reliable investment tool say that:

1. An immediate fixed annuity is a good investment choice if you want your income to last a lifetime. It guarantees that you will not live longer than your money. As a result, you can just sit back and relax. You do not have to worry about unmindful and careless spending that will make all your money slip off your hands. With this annuity, you are given the power to budget your money on a monthly basis.

2.  It is appropriate for people who have saved but, unfortunately, failed to save enough for their retirement. The money you invested in an immediate annuity grows through the interest rate specified in your annuity contract. Moreover, if it is a fixed annuity, it is tax deferred. This means that your money will grow faster.

3. It allows investors to save a huge amount of money from taxation

4. It is recommended for an old investor who does not need to gain access to his capital before the contract’s maturity date.

5. Your money is guaranteed by the issuing insurance company.

6. Your investment is not going to be affected by market downturns, recessions, or economic depression.

Those who think that the immediate annuity is not a profitable investment say that:

1. Most annuity owners sell their annuities because they do not gain anything from it. That is why the number of articles online about how to sell your annuity is increasing.

2. Annuities in general are only offered by insurance companies because these guarantee them a huge profit margin.

3. It is only useful for sales agents who receive a commission for every annuity contract they have sold. Some people think that sales agents do not really care for the welfare of their clients; they only care for the money they could get when they succeed in convincing clients to buy annuities.

4. It does not allow annuity owners to have access to their own capital.

5. It does not allow you to profit from a rise in the stock market.

These are people’s basic arguments about the immediate annuities. Although these are important for your own assessment, you should not solely rely on these testimonials.  Talk to financial experts you trust. Compare annuity quotes and rates from different sources. There might come a time when you no longer have to rely on other people’s opinions because you already have a first-hand experience with this kind of annuity.

Answering these questions is important because each of our partners will provide you different rates depending on your individual circumstances and situation.

Annuity for Retirement: Retiring With Confidence

Annuity for retirement is one of the way to retire with confidence. As we all know that recent economic factors affect the way seniors spend their life. Most retirees ten to fifteen years decide to unretire due to economic reasons. They are forced to return to work or look for ways to earn a living when they no longer have enough money to sustain their needs.

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It is important that as early as now, those who are regularly employed should understand that many things affect the lives of senior compared to younger generation. Younger people may not need budget for hospitalization and medicine needs since they are well covered by their insurance or health benefits from their employers. However, as you grow older, you will see that seniors may need hospital care, medications and other things and as a senior, you have to give money for these needs since it will no longer be covered.

To avoid serious problems and regrets how you handled your income when you are still lot younger, it is recommended that you put your hard-earned money to a good investment.

Annuity for retirement is often considered a practical investment, which may help you deal with your old age. For one, annuity is tax deferred investment plan, which allow you to save money even without any taxes. Most investment plans in the market will charge you with several kinds of taxes. Sometimes too many taxes will let you wonder if there will still be left for the interest charge when all the taxes are collected. However, with annuity, it allows you to save money without being taxed immediately. You will only be taxed when you decide to withdraw your money. The recommended withdrawal period is after seven to eight years. After that period, you may now choose whether you want to receive monthly stipends or one huge lump sum. Monthly stipends are like receiving your paycheck the same way you work before or a huge lump sum, which is one time pay.

There are several types of annuities. You may select from immediate or deferred annuity. With immediate annuity, you may start to receive money after your first payment. With deferred, you will have to wait for a minimum of a year up to eight years before you can withdraw your money.

The good thing for annuity is that it is inflated protected and principal protected. As inflated protected, the money that you will receive on the distribution period will allow you to live comfortably since the interest rate of annuity is the highest in the financial market today. Meanwhile as principal protected, you are guaranteed to receive almost the same price that you had initially invested. Most investment is affected when the market moves; you may lose a part of your money if you are not well informed if how the market works. However, with annuities, you will not lose any part of your money because of the protection that goes with the principal. Your principal is not affected regardless of the market downturns.

Likewise, annuities are easy to manage; you do not have to be financial guru to understand how it works. The annuity experts of your insurance company will be the one in charge where the money you deposited will be reinvested. All annuities are also regulated by Securities and Exchange Commission so you do not need to have any worries.

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Spending a Good time after Retiring with Retirement Annuity Plan

Retirement is inevitable for most individuals, and it is good to know that after all your hard work through the years, you can finally relax and rest while spending time with the people that you love most. However, it is also important to ensure that you are able to enjoy this time to the fullest, without the fear that you do not have enough money because you no longer receive a steady income. An individual who wants to know more about this time in their life may shop around for the various options, and may want to know, what is annuity?

Annuity is an investment tool which is very suitable for retirees as it allows the individual to invest some money with an insurance company which will pay them after an agreed period of time. The payment could be made at once or in regular intervals based on a pre-determined calculation. The individual inquiring what is annuity should be enticed by being informed that in a retirement annuity, tax is deferred for the period when the income is accumulating.

Retirement annuities usually mature after retirement, and one should choose a plan that will meet their retirement needs. For starters, they could go for a variable annuity to be paid after retirement, and in this type of annuity, the investment is given the chance to grow or decline depending on the performance of the purchased subaccounts. It can be quite lucrative, and in the end, the investor who inquired what is annuity could get good rewards if they choose to purchase this type of retirement annuity.

There is always the option of a fixed retirement annuity, in which the growth rate is fixed and the returns are not as good as those in a variable annuity during a good year. However, the individual who enquired what is annuity should be advised that this option is safer as there is no risk of losing your investment.

Another beauty with a retirement annuity is that individuals are usually paid for life, meaning that there is no possibility whatsoever that they will live longer than their annuity. Therefore, payment for all the days after retirement is assured, and they never have to worry about lack of finances because this type of investment never runs out.

The retirement variable annuity also has another benefit which is known as a death benefit. This means that any investment left over after the death of the investor before payments is handed down to the beneficiary, who is usually a living spouse for the rest of their life. This is a relief to most retirees as it assures them that they will not pass away and live their beneficiaries with nothing.

Retirement annuity has a lot of benefits, however, the individual should do their homework before deciding on which company to purchase from, as well as the type of annuity to purchase. Each company has different charges and fees, and proper research will help the retiree settle for the best annuity provider out there.

Annuity for Retirement: Retirement Annuities as Income Vehicles

Annuity for retirement is an important vehicle in building your nest in the future. Imagine as a regular worker, you are used in receiving a money income, which you can use to correspond to your needs but when you retire, how will you respond to your financial needs? When you are younger, you have pressing needs like education, providing for the family and other obligations but when you get older, more pressing matters like health concerns, mortgage and financial woes are added.

RetirementInvestmentAs a retiree, there are so many things that you  may not be ready such as stoppage of your daily routine and source of income, to help you manage these things, hence it is important that you equipped yourself as early as now to help you cope with life different changes.

Part of planning your retirement is to have an investment now while you are still young and you are then able to enjoy the money when you retire. Invest your money right now by availing retirement annuities.

Retirement annuities are an investment product of insurance companies but what makes this difference is that this involves bonds and securities. There are different kinds of annuities. The variable annuity and fixed annuity, both annuities almost work the same, the only difference is how the money is invested. The variable annuity will allow the annuitant to choose where he or she wants the money to be reinvested. The annuitant may chose whether to put it in one investment or diversified investments like securities and bonds but with fixed annuity, the money is reinvested by the insurance company in one investment instrument.

Retirement annuities are considered a good income vehicle when you retire because of its several benefits that can be tailor made for your demands.

First, as an income vehicle, you can choose whether you want to receive a lump sum of large amount when you reach your retirement age. The huge amount may help you buy retirement property where you can resettle after retiring.

Second, if you do not want to receive lump sum, you may choose to receive money in monthly or quarterly basis. This is often what most retirees prefer since receiving money each month can make them feel that they had not retired at all.

Third, unlike other investment instruments in the market that offers low-interest rates, annuities may offer high interest and guarantee higher yield for annuitants.

Fourth, annuities are tax-deferred investment. All investments in the market like mutual funds and bonds are taxed immediately. Sometimes, you may not see the returns because of the taxes that are charged up front but with annuities, you may deposit many times without being taxed.

No payments during the accumulation period are taxed and you will only be charge when you withdraw come you are retiring age. That means you can get the real value of your hard-earned money.

If you would like to have a more fulfilling retiring experience for you and your family, find out more about annuities now!

If you want to find the rightkind of annuity for you, enter your ZIP and answer basic questions today to get a free annuity quote. The free quote will help you choose which offers the most interesting rate for your future plans and needs.

Pros and Cons of Fixed Annuity for Retirement

It is extremely important that retirees who want to invest in annuities are well informed about the advantages and disadvantages of buying annuities before making such a decision. We will take a deep look at the pros and cons of fixed annuities and give you the opportunity to compare rates from different annuity providers.

Usually, fixed annuities require investors to deposit a fixed amount with the insurance company; and the get payouts periodically or as a lump sum at the end of a particular period. One of its major advantages is the fact that it is convenient for those who are not willing to risk their investment in the stock market as a result of its fluctuating nature. The risks attached tp investing in fixed annuities are minimal or sometimes even non-existent. With fixed annuities, you do not pay taxes on your investment until you make withdrawals. Investing in fixed annuities is a good option for retirees because it guarantees them a fixed source of income for life.

Another advantage is that you have rest of mind when you invest in fixed annuities because your rate of return is fixed and guaranteed; it is not subject to the instabilities of the stock or bond market.  Also, an investor in fixed annuities has flexibility of options. He can choose the immediate annuity and as such start receiving payouts after a short period or the fixed deferred annuity where he receives a lump sum payment after a longer period of time. One other major advantage of the fixed annuity is that some insurance companies have a provision in the contract that allows your family or loved ones enjoy the benefits of the annuity in case of death.

On the other hand, one of the down side of buying a fixed annuity product is the fact that it costs relatively higher than other non-annuity options. Also, if you decide to increase your investment in annuities in the future, you have to buy a whole new annuity product because you cannot add to your previous annuity plan due to the fact that it is fixed. Furthermore, you are unable to withdraw from your fixed annuity until you are 59.5 years old. Premature withdrawals attract a penalty of 10% by the Internal Revenue Servcice of the United States.

The interest rates gotten from fixed annuities are relatively low when compared to what you can get from investing in other products e.g mutual funds. Due to the fact that fixed annuity plans may be too complicated to understand, people who purchase them without being properly informed may lose huge sums of money and end up dissatisfied with the product.

Having looked at a few pros and cons of fixed annuities, a proper evaluation of your needs will help you choose your retirement options accordingly.

To get started, enter your zip code on the top of this page, and then answer some basic questions. This will help you to compare annuity plans from multiple providers for FREE to determine your highest eligible rate. It is important to provide accurate questions to these answers as our pool of providers will provide you with different rates depending on your individual circumstance and situation.

Annuity for Retirement: Various Types of Retirement Plans

Securing your future retirement should be paramount in your mind if you really want to enjoy the period. There are various types of retirement plans you can explore. You need to take time to study them in order to pick the best plans that can secure your future retirement.  Let’s discuss some of them here.

Annuities:

There are   contracts you can have with insurance companies.  You can go for a profitable annuity for retirement and enjoy all its features.  You simply invest your lump sum to purchase any of the annuities that can suit you. In return, the insurance company invests your money and also pays you enough income returns at an agreed date. There are various types of annuities you can explore. They can be in the form of immediate and deferred annuities. They can also be in the form of fixed and variable annuities.  Each of these annuities for retirement comes with advantages and disadvantages. You have to explore each one to know the best type that can suit you.

Government-Sponsored Plans:

These are retirement plans sponsored by the government for the good of retiring workers.  Social Security plan is the best description of government plan you can ever think of. You’ll always benefit from it if you explore the features involved.

Personal Plans:

These are retirement plan you execute by yourself.  A typical example of such plan is the Individual Retirement Agreement (IRA).  It usually comes in a variety of types with tax issues. You can benefit a lot from such plans.

Employer-Sponsored Plans:

These are plans sponsored by your employer.  It can be in the form of qualified retirement plans, which meets the Internal Revenue Code requirements, and the Employee Retirement Income Security Act of 1974 requirements. It can also be in the form of non-qualified retirement plans, which do not meet the   Employee Retirement Income Security Act and Internal Revenue Code requirements.

There are some other retirement plans available. You can always search online for them. Among the discussed plans above, annuity for retirement stands as the most viable. It comes in a variety of kinds.  It can help you generate many cash for your retirement periods. Several insurance companies are always on the lookout for retirees who can invest into annuities. Individuals still in the active service can as well invest their   saved money into annuities in order to secure their future.  It’s usually a great idea to invest in a profitable annuity for retirement.  You future retirement can easily be secured when you choose the right option.

To be on a safer side, you need to be properly guided when searching for various retirement plans. You don’t need to jump into any of the plans you see. There’s every reason for you to take your time to choose the best retirement plans that can fetch you enough income when you retire.  You can help yourself the more by seeking the advice of a good financial adviser.  You’re sure to pick the best retirement plans that will pay you in the long run.

What Is Annuity? A Look at Lifetime Annuity and Its Features

If you’re asking about what is annuity, there’s the need to explore all the possible avenues about the subject. Annuity is very verse especially when you consider the avalanche of information   on the topic. There are several pieces of information you need to know about its types and their features.  Lifetime annuity is one of the several aspects you need to understand. Let’s examine what it stands for in this write-up.

Actually, Lifetime annuity   is known for its reach offers and benefits.  It’s simply a kind of annuity that pays you a specified income amount for the rest of your life. It’s a kind of contract you enter with an insurance company.  You invest your lump sum of cash and allow it to work for you. The insurance company will be paying you   dividends all through your life time.  This kind of annuity is very common among several insurance companies in the US.   Many people who want to enjoy steady flow of income during retirement like going for it.

Actually, Lifetime annuity demands a lot from the investor. You’re expected to use your pension fund for the investment process.  When you do that, the insurer will then agree to pay you regular income from the returns coming from the pension fund invested.  In most cases, the income payment can be made quarterly or monthly. It can also be made yearly or twice in a year.  There are terms and conditions that apply to the investment. You need to check them out before investing.

Oftentimes, lifetime annuity is also known as “immediate annuity”.  Normally it begins with a unique proposition.  You’ll hand over a lump sum to the insurer of your choice.  In return, the insurer pays you a guaranteed amount for a specified period of time. This can last for the rest of your life as well.

You need to know that your initial investment   will no longer be paid you. It belongs to your insurer after your demise.  However, the income payments will still continue for life. Your beneficiary receives that after your death.  Your spouse or child   can be the beneficiary. You have to include that at the initial signing of the contract. You also need to intimate your beneficiary about your investment at all times. This will help him or her to pursue the income payments in case the insurer begins to misbehave.

In getting to know about what is annuity, you’ll discover that Lifetime annuity has a lot of benefits.  In the first place, you’re sure of steady flow of income through the pension fund you invest.  You can also choose when to receive the income payments. You can also decide to leave the payment   until a certain period in your retirement state.  You can equally decide to have access to your income payment once or twice a year.    In fact, lifetime annuity is very flexible.  You’ll always have the right to make choices.

Meanwhile, there are some negative aspects of lifetime annuity.  When studying about what is annuity, you must not forget to look at the dark sides.  Lifetime annuity is always taxable. You’ll be paying tax all through the period of the annuity.  This can reduce the amount of income payment you’ll be receiving.  In any case, you should always be properly guided by a good financial adviser before you think of choosing this kind of investment option.

What is Annuity? A Look at Immediate Annuity

Annuity has always remained a veritable means of generating steady income for retirement. If you succeed in discovering what is annuity and how it works, you’ll always have a good time when you retire. It’s basically a contract you enter with an insurance company whereby you invest you lump sum and expect the company to pay you income returns at regular or deferred intervals.

Annuities have various forms or types.  Immediate annuity is one of the types you must know a lot about.  It’s a unique investment option that allows you quick access to the investment you make within a short period of time.  In several quarters, it’s also known as payout annuity.   The regular premiums you invest in the immediate annuity are not paid upon your death. On the other hand, you’ll be receiving regular income payment until death.

In most cases, immediate annuities begin to pay right away once you’ve made the initial purchase payment.  People who are ripe for retirement usually go for such investment options. You can easily enjoy steady means of income once you invest into the annuity.  If you’re already having a deferred annuity, you can request it to be converted into immediate annuity so that you can reap immediate income returns.

There are benefits that come with immediate annuity. It’s always important you look for benefits each time you take a look at what is annuity.  Immediate annuity usually begins to pay right from the time you make the initial investment.  This can help you not to outlive your investment when you eventually retire. You simply keep on receiving the income payments right from day 1 to the time you retire.

You also have the option to choose fixed immediate annuity.  This option ensures regular income flow at fixed intervals.  The income will also keep flowing for several years even before you retire.

Immediate annuity can prevent you a lot from worrying about your investment since you’re sure of receiving regular payments from it.  You’ll always have enough cash to settle your expenses. You can easily pay your bills and also enjoy regular shopping since you’ll always have access to cash.

If you also opt for a variable immediate annuity, you’ll still gain. You’ll have to reserve the buying power of the investment ahead of any inflation that may spring up anytime.

Having seen the benefits of immediate annuity, there’s also the need to check out the negative aspects.  In the first place, there’s a possibility of paying high charges when you go for immediate annuity.   If for instance you go for a fixed immediate annuity, it guarantees you a set of payment for a period of time.  Yet, you’re likely to live longer than that specified period. This may force you to lack regular income flow.  Inflation may also cause your fixed payment to change over time.  This will then reduce the amount of income payment you’ll be receiving.

In any case, there’s always the need to be well informed before getting into any kind of annuity investment. Always engage a good insurance agent to help you out.

Watch Your Back – Know When to Sell your Immediate Annuity

Some types of immediate annuities can be sold by their owners to interested buyers or investors. Annuities are usually sold in the secondary market where owned security properties can be sold or traded. For the purposes of this book, the immediate annuity is divided into two types – the qualified and non-qualified annuity. This division is based on the type of funds or assets that are used to purchase the annuity contract.

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Qualified Immediate Annuities

Qualified immediate annuities are annuities considered as a retirement account that goes through certain requirements under taxation laws. This kind of immediate annuities, which are also called retirement annuities, are not allowed by the Internal Revenue Service to be sold by annuity owners. These annuities are classified as Roth individual retirement annuities and are non-transferable. They are purchased from pre-tax assets, which means that the value used to purchase the annuity was not yet subjected to taxation. Therefore, the regular income received in qualified annuities is taxable.

Annuity rates in qualified contracts generally apply to both the female and the male sex. However, some states require different rates for females and males.

Non-Qualified Immediate Annuities

Non-qualified immediate annuities are purchased with after-tax assets. This means that the money used to purchase the annuity had already been subjected to taxation. Therefore, a part of the income from non-qualified annuities is measured, using a particular exclusion ratio, as a return from the annuity principal (which had already been taxed). This part of the annuity income is exempted from tax. Examples of after-tax assets are earnings from the sale of a private property (like your house), Certificate of Deposit, proceeds from a previous life insurance policy, and mutual funds.

Non-qualified annuities are not considered as retirement accounts and are transferrable. Because they are transferrable, some states allow annuity owners to sell their accounts or contracts. When an annuity owner sells his/her annuity, he/she will receive a lump sum payment from the buyer of his/her contract. After the sale, the person who bought the annuity contract will be the one to receive the remaining income (usually every month) from the annuity.

Annuity rates in non-qualified contracts are generally different for females and for males. There are some states, however, where unisex annuity rates are required.

Reasons Why Annuitants Sell Their Annuities

Most annuitants who sell their annuity contracts want to get a lump sum payment instead of receiving a monthly income. Generally, they are young annuitants who do not have to save for long term goals – like retirement goals. On the other hand, older annuitants (most of them retirees) generally do not sell their annuities because they want a stable source of income that can last as long as they live.

You might want to sell your annuity contract because you badly need a huge amount of money as soon as possible. You might need to pay off a debt or to purchase a house. In this case, you might opt to sell your annuity so that you can collect the amount of money you need at the moment.

Look Before You Leap

Depending on your current situation, selling an annuity can be advantageous.  It does not mean, however, that you should do something just because you are allowed to. Make sure that you will make an informed decision. Ask help not only from your family and friends but also from annuity experts.

In selling your annuity, you have to keep in mind that you will not be able to get the full value of your annuity account. Generally, investors will only be interested if they will profit from the transaction.

Types of Immediate Annuity – Determine Which Is the Best for You

If you are preparing for your retirement, buying an immediate annuity might be the best investment for you. This type of annuity has two basic types – the Fixed and Variable annuity.

The immediate annuity is appropriate for you are already close to retirement and you want to get for yourself a regular and stable income. This type of annuity allows you to immediately receive income for a certain period of time or for as long as you live. You can start receiving annuity income immediately after you have given your payment for the annuity.

Immediate Fixed Annuity

In fixed annuities, you are going to be paid a fixed income every month from the date you decide to start receiving money. The rate of return you will receive is fixed and will not change no matter what happens to the economy or to the stock market. Thus, if you are afraid of market downturns, recessions, and economic depressions, the fixed annuity is appropriate for you.

One of the chief advantages of the fixed annuity is tax deferral. Income from a fixed annuity is tax-deferred. The fixed annuity owner’s investment is exempted of any tax while it is still accumulating. Taxes are charged only when the owner, or his/her beneficiaries, decides to withdraw money from the annuity. This feature allows you to make your money grow faster. In addition, you are given control over when to pay your tax. Because you are only charged with tax every time you withdraw from your annuity account, you are in control of when to pay your taxes.

Moreover, taxes can be postponed when the owner of the annuity dies and he/she named his/her spouse as the beneficiary of the annuity account. The turning over of the account is carried out without taxation. Moreover, the spouse (the beneficiary of the original owner of the annuity), can also transfer the annuity to an heir who can have as long as five years of additional tax deferral.

The fixed annuity is a stable investment especially designed for retirement purposes. If you are retiring soon, the immediate fixed annuity is the best choice for you.

The Immediate Variable Annuity

In variable annuities, your money is invested in stocks, mutual funds, and bonds. Thus, the monthly income you receive is dependent on the condition of the economy and the stock market. If the stock market rises, the rate of returns you receive from a variable annuity will increase. On the other hand, if the stock market falls, your annuity rate of returns will decrease. It goes without saying that variable annuities involve greater risk than fixed annuities. However, with greater risk comes a higher possible return. If you do not fear the fluctuations in the stock market, the variable annuity could be a good choice of investment. Just like in fixed annuities, income in variable annuities is tax deferred. You can choose between getting the returns on a short term basis or on a long term basis.

The type of immediate annuity you choose depends on your goals and your priorities. If you are still in the process of accumulating money before you retire, you are more likely to invest in immediate variable annuity. One the other hand, if you have already accumulated enough money that will last from the day you retire to the day you pass away, you are more likely to invest in immediate fixed annuity because it gives you a stable monthly income. Where you put your money is an important decision. Before you decide on the type of annuity to invest in, weigh your priorities, you goals, and all the possibilities.