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A fixed annuity is invested with the insurance co who then invests in a variety of things. All you need to worry about is that with a fixed annuity it is all guaranteed and there is zero risk. Currently you can get a guarantee of 6% interest for 10 years at a period of time when banks and the FDIC are failing and the market is down. Insurance companies are your safest bet as they know how to manage risk.
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Can you take some money out of the annuity from citi and then put it back with in 60 days?
Only if the annuity is an IRA or Roth IRA. A non-qualified annuity does not have this rule.
What is the difference between a qualify annuity and non qualifying annuity?
You mean qualified. It refers to the tax status of the funds inside it. If funds are qualified that is IRS/investment lingo for pre tax money, such as money in a 401K, IRA, or 403b. Non qualified obviously is money that income tax has already been paid on. Taxes in an annuity are defered until you use the money. In a qualified annuity all of the money would be subject to income tax upon withdrawal. In a non qualified annuity only the gains would be taxed. But since it is tax deferred you pay your income tax rate, not capital gains taxes. The original amount invested is not subject to tax when you withdraw it.
Are there tax consequences when you move money from an annuity to a mutual fund?
AnswerThe answer depends upon whether the annuity was purchased inside an IRA or employer-sponsored ("qualified") plan. If so, then money can be transferred from the annuity to any other investment in that plan (for employer sponsored plans, that means only those investments permitted in that plan; for IRAs, it means any investment you wish to purchase within your IRA) without tax.There may be surrender chargesimposed by the annuity, but the transfer will not be a taxable event.If the annuity was purchased outside such plans (with after-tax dollars), then any distribution from the annuity (including a direct transfer to a mutual fund) will be taxable, to the extent of "gain" (contract value in excess of the amount you invested). In addition, if you're under age 59 1/2, there will be a penalty tax of 10% of the distribution (IRC Sect. 72(q)).
As of 4/4/01 I show I invested $45,000 in an annuity at 5.75% - Provident Mutual 2. Do I still have that account. If so- value If not when was it withdrawn and by whom Necia A. Black 40 Lennox Ave,Amherst,NY It would have been 51 High Park Blvd?
This is something that only the finincial institute can answer.
What should you do if you wanted to hedge a long position in treasury bonds?
Assuming that you were only concerned with hedging the interest rate risk (rather than FX or credit risk) on any Fixed income instrument, then you would use interest rate swaps to change your fixed rates to floating.
Understanding Fixed Immediate Annuities?
Annuities are a type of financial contract where an individual gives a bank or other institution money that is deposited into an account and sometimes invested. At some point the person who is paying into the annuity can stop depositing money and will instead start receiving money from the account each month. A fixed annuity is a contract that guarantees a person will receive a fixed amount of money every month for a certain period of time or for the rest of his or her life. A fixed immediate annuity begins paying the policy holder as soon as a single premium payment is made. The premium that is paid on a fixed immediate annuity is usually a very large sum of money. The fixed monthly payments start a few weeks after the premium has been received. The money that is in the annuity that has not been paid out can be invested and can gain interest slowly over the course of the policy. The payments can be made for a set period of time such as 20 years or they can be indefinite up until the death of the policy holder. Many people use a fixed immediate annuity to distribute personal savings over the course of many years after retirement. This is done because the money that is distributed from the annuity is not taxable. Only the interest that the money earns is taxable. This is presents a very favorable tax situation that is superior to some other types of retirement accounts. The tradeoff for this tax incentive is that the money is not available beyond what is paid out each month. Individuals that do attempt to withdraw all of the money in an annuity at once usually face high fees, penalties and taxes. The actual payments that are made to a policy holder are guaranteed by the bank or institution that is distributing the money. This is true even if the money from the annuity is lost in an investment. Alternately, money that remains in an annuity beyond the value of the original premium that was paid can be absorbed by the bank when the policy ends or when the policy holder dies.
What is the difference between fixed deposit and non convertible debenture?
fixed deposit has its fixed term, but debenture does not have any term. fixed deposit can be invested in eqty,debt or any other , but the debenture is debt only.
Are annuities a stable investment to make money at 82 years old?
At 82, Fixed or Fixed Indexed Annuities are the only way to go for someone that age. Make sure its NOT a variable annuity.
Fixed annuities do you get back principle when die?
In a fixed deffered annuity you get principle plus all earned interest. In an income annuity, you may or may not, it depends on the company and the product chosen. This feature has only been around for a short time. So if it is an old annuity it most likely is set to pay out for a specific length of time, therefore you would not receive the principle back upon death. But the beneficiary or estate would receive the remaining payments.
Can a ex wife be in titled to annuity?
Only if the annuity was addressed in the divorce settlement.
How To Secure Your Retirement Income With A Fixed Annuity?
Fixed annuities provide a secure income for retirement planning. They offer a guaranteed rate of return that is typically more than a bank CD. The payments are fixed and can be paid out on a monthly or even annual basis. Every annuity has a broad range of features that can be adapted to each individual’s specific needs. With a fixed annuity, premiums can be made by a single lump-sum payment or through an installment schedule. The investor schedules the installment payments according to his own availability of funds. There are no restrictions on the amount that can be invested in annuities. This is beneficial for individuals who might have received large amounts from proceeds of a company retirement plan, sales of a business or an inheritance. Fixed annuities are generally considered to be very low risk. The major issuing insurance companies usually have very high ratings from Moody’s, Standard and Poors and A.M. Best. The earnings of a fixed annuity will accumulate tax-free. This gives the investor a much higher compounded rate of return when compared to other investments that are taxed as they are earned. The earnings from a fixed annuity will not be taxed until the time of withdrawal when the investor’s tax rate should be lower. A fixed annuity has two types: life and term certain. A life annuity will make payments until the annuitant dies even if this exceeds the amount of the original investment. The lifetime feature eliminates the possibility of outliving the investment and guarantees that the investor will have income as long as he lives. Under a term certain annuity, payments are only made within a specified time frame. If the annuitant dies before the time period has been reached, the insurance company keeps the remaining balance on the contract. While fixed annuities are intended to be long-term investments, there are provisions for early withdrawal in the event of an emergency. Most contracts allow up to 10% to be withdrawn penalty-free, but the conditions and terms from each issuing company are going to vary.
Can you take some money out of the annuity from citi and then put it back with in 60 days?
Only if the annuity is an IRA or Roth IRA. A non-qualified annuity does not have this rule.
Calculating Your Retirement?
In an uncertain economy and among investments that do not necessarily pay off when you need them, the fixed annuity is one of the best investments for the retail investor with little time to actively manage an investment portfolio. The fixed annuity can provide security for the rest of a lifetime, and if correctly used, even the benefactors of the annuity owner if the annuity owner passes on. Fixed annuities offer some of the best interest rates of any fixed investment, including certificates of deposit and money market accounts. The fixed annuity calculator is a tool to help plan for the future. Since all annuities earn an amount of interest based on a lump sum of money and the interest rate, the fixed annuity calculator can help investors to know exactly how much money they will need to save over a certain period of time. From that lump sum will come the payments which upon retirement, can help supplement or fully support a non working lifestyle. Because of the prevalence of the internet, there are fixed annuity calculators online. This complex calculation used to be the realm of accountants and investment bankers only, but because the information is actually standard across most fixed annuity plans, the online fixed annuity calculator can provide a quite precise calculation of how much money an investor would need to save at what interest rate to get back a certain amount upon payment of the annuity at its maturity. Simply go on to the web site, fill in the slots for principal payment, number of years to save money, and the interest rate of the annuity, and the annuity calculator will present you with the amount you will receive upon maturity. There are also calculators which work the opposite way; you can key in an annual or monthly stipend amount, and the calculator will tell you how long and how much you must save. One caveat to be remembered about the fixed annuity is the administrative payments that are taken out of the principal before interest is calculated. These vary from plan to plan and should be looked over before any investment deal is closed.
I understand the upside regarding a fixed income annuity, please let me know what some of the downside risks are Thanks?
Well, the biggest downside is of course that it is fixed, with only possibly minimal cost of living increases that really won't match with the costs of goods and services in reality.
Understanding Annuity Payouts?
Creating a steady income for retirement is a topic that is often discussed by many people. Fortunately, there is a way that you can have a steady retirement income. If you are thinking about a way to create retirement income, you might want to consider annuities as a potential investment option. Annuities can be created when you give a lump sum of money either to an insurance company, a charitable organization, or a university. In exchange for your giving the money, you are then promised an annuity payout that will start at a predetermined time and will occur annually for the remainder of your lifetime. In terms of what the annuity payout will be, that depends on how much money you give initially. The more money you give, the higher your annuity payout is likely to be. Also, much depends on how many years you defer the annuity. In other words, the annuity payout will be larger if you defer the start of the payout for more years as opposed to fewer years. Another thing to keep in mind is that there is fixed annuity payout and there is variable annuity payout. You can typically choose whether you are going to get a fixed annuity payout or a variable annuity payout at the time that you give the initial lump sum of money. If you select a fixed annuity payout, it means that your annual annuity payout will always be the same amount when the payments start occurring. However, if you select a variable annuity payout, that means that your annuity payout will vary from year to year depending on the results of investment and economic conditions. Granted, annuity payouts are not the only investment options that one has for retirement. For instance, there are Roth IRA’s and various other types of retirement investments that are available if you want them. Nonetheless, in terms of sheer simplicity, the annuity payout option is difficult to beat because you do not have to worry about making investment decisions by yourself. All you have to do is just give an initial lump sum payment and then wait to receive your annuity payments annually.
What is the difference between a qualify annuity and non qualifying annuity?
You mean qualified. It refers to the tax status of the funds inside it. If funds are qualified that is IRS/investment lingo for pre tax money, such as money in a 401K, IRA, or 403b. Non qualified obviously is money that income tax has already been paid on. Taxes in an annuity are defered until you use the money. In a qualified annuity all of the money would be subject to income tax upon withdrawal. In a non qualified annuity only the gains would be taxed. But since it is tax deferred you pay your income tax rate, not capital gains taxes. The original amount invested is not subject to tax when you withdraw it.
Where can a person go to get tips on annuity selling?
Forbes is well known as an advisor in the world of annuities, stock, and bonds. They are only one of many advisors that may be found on-line. A person's bank may also have information available.
