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What are the advantages to choosing a life annuity as a pension payout option over rolling over the money to an IRA and withdrawing monthly from the principal the same amount as the annuity pays?
Mfgavin
The question you have to ask yourself is where is the money going to come from if the IRA principal balance goes to zero. If you purchase an income rider on a variable annuity you can secure growth and income guarantees on the benefit base from which you will be drawing your future income.
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What are the advantages of using annuity brokers to purchase an annuity?
The advantage of using an annuity broker is that they can present you with a range of options that may have been difficult to find otherwise. They may also be able to give advice on which annuity is a good fit for you. You should always understand any fees charged by the broker before using their services.
What gains more interest an ordinary annuity or an annuity due?
ordinary annuity
What is monthly annuity?
The option to get annuity every month is called monthly annuity.
What The difference between ordinary annuity and annuity due?
ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period
How can you withdraw money from annuity?
Your annuity policy document should have all the withdrawal provision detailed for you. If not contact the company you have the annuity with and they can give you instructions. Before you withdraw from an annuity be aware of the tax treatment of your annuity withdrawals.
S there a penalty for withdrawing from my single premium annuity for a house?
yes
What are the advantages of using annuity brokers to purchase an annuity?
The advantage of using an annuity broker is that they can present you with a range of options that may have been difficult to find otherwise. They may also be able to give advice on which annuity is a good fit for you. You should always understand any fees charged by the broker before using their services.
What would happen to the future value of an annuity if interest rates fell in later period's?
Your annuity will decrease in value as your interest earned would decrease, which would just continue to snowball because that would make your principal value less even further down the road, causing your annuity to devalue even more.
Should I buy a variable annuity?
If you're retired and have barely enough money to meet your annual expenses or fear that you will outlive your capital, then consider purchasing an immediate annuity. You'll get a guaranteed income stream, even if you outlive your annuity's principal. Of course, if you die tomorrow, the remaining balance of the annuity goes to the insurance company. For some, that's a risk worth taking to gain some peace of mind.
When do you use fvif and fvifa?
An Annuity is a series of payments of a fixed amount for a specified number of equal length periods When the FV of an annuity is known, and you need to calculate the value of each payment, or the FVIFA, then: FVIFA = Future Value Interest Factor Annuity FVIFA = ((1 + r)t -1)/r FVA = Future Value of an Annuity FVA = PMT x (FVIFA r, t) * where: PMT = Regular payments r = discount rate - (interest rate of your choosing) t = number of periods (time) of annuity - (number of years for example) When the PV of an annuity is already known, and you need to calculate the value of each payment, or the PVIFA, then: PVIFA = Present Value Interest Factor Annuity PVIFA = ((1/r) - 1/r(1+r)t ) PVA = Present Value of an Annuity PVA = PMT x (PVIFA r, t) * where: PMT = Regular payments r = discount rate - (interest rate of your choosing) t = number of periods (time) of annuity - (number of years for example)
Can a power of attorney access an annuity?
Only an active power of attorney can access an annuity product. If the person for whom the power of attorney is created is NOT incapacitated (or ruled incompetent in probate court), then only the individual, whose name is on the annuity, can access it.AnswerYou need to check your state laws for statutory powers granted under a POA and you must also check the POA for any specific powers granted or restricted. A POA gives the attorney-in-fact broad powers that vary from state to state. For example, the state of Ohio bestows the following statutory powers regarding annuities:(H) Language in a power of attorney granting power with respect to insurance and annuities authorizes the attorney in fact to do all of the following:(1) Continue, pay the premium or assessment on, modify, rescind, release, or terminate a contract procured by or for the principal that insures or provides an annuity to either the principal or another person, whether or not the principal is a beneficiary under the contract;(2) Procure new, different, or additional contracts of insurance or annuities for the principal or the principal's spouse, children, or other dependents and select the amount, type of insurance or annuity, and mode of payment;(3) Pay the premium or assessment on, modify, rescind, release, or terminate a contract of insurance or annuity procured by the attorney in fact;(4) Apply for and receive a loan on the security of a contract of insurance or annuity;(5) Surrender and receive the cash surrender value;(6) Exercise an election that is not specifically prohibited;(7) Change the manner of paying premiums;(8) Change or convert the type of insurance or annuity, with respect to which the principal has or claims to have a power described in this section;(9) If specifically authorized in the power of attorney, change the beneficiary of a contract of insurance or annuity designated by the principal;(10) Apply for and procure government aid to guarantee or pay premiums of a contract of insurance on the life of the principal;(11) Collect, sell, assign, hypothecate, borrow upon, or pledge the interest of the principal in a contract of insurance or annuity;(12) Pay from proceeds or otherwise, compromise or contest, and apply for refunds in connection with, a tax or assessment levied by a taxing authority with respect to a contract of insurance or annuity or its proceeds or liability accruing by reason of the tax or assessment.You can review the long list of other Ohio statutory powers at the link provided below that is included for reference purposes only. For statutory powers of an attorney-in-fact in your state you need to check your state laws.
Do you pay taxes on income earned in an annuity?
If the annuity is a non qualified tax deferred annuity (an annuity that taxes were paid on the money before they were placed into the annuity) you will pay taxes on any interest growth when it is removed from the annuity. If the annuity is a qualified annuity (no taxes were paid prior to placing the fund into the annuity) you will pay taxes on all withdrawals from the annuity.
What is the primary difference between an annuity and a compound annuity?
difference between an annuity and a compound annuity?Read more: What_is_the_primary_difference_between_an_annuity_and_a_compound_annuity
About Annuity?
Saving money throughout your lifetime can be a helpful tool to obtain financial security. It can be difficult to decide which plan is best for you to save the most money for your retirement. Some people choose 401K plans or even IRA's, but there is another way to save money effectively.AnnuitiesAn annuity is a savings plan used for extended term growth and asset protection that can be used during retirement. Annuities have many advantages over other investment options. Annuities are able to provide a guaranteed interest rate, long-term growth, trust advantages and also secure the principal and earnings of your savings.With the annuity plan you choose, you are required to make a lump-sum payment or series of payments. The insurer consents to make periodic payments to you beginning at some future date or immediately. There are three types of annuities: fixed, variable and indexed.Fixed AnnuitiesA fixed annuity is a contract where the insurer makes scheduled payments to you for the period of the contract in dollar amounts. These payments will continue until the annuitant dies. Earnings and principal are guaranteed through your insurer.Variable AnnuitiesIn a variable annuity, the annuitant chooses from a variety of different asset options, in order to invest their payments. The investment options you select determines the rate of return on your payment and the number of scheduled payments you will receive in the future. The purpose of the variable annuity is to obtain larger payments if the savings performs well. But you will receive lower payments if the savings performs badly.Indexed AnnuitiesAn indexed annuity is when the insurer credits you with a profit that is determined by an alteration an in index. Also, indexed annuity provides a specified minimum that your contract value will be no less than. This happens regardless of index performance.The indexed annuity may be a security or may not. These are not listed with the security and exchange commission (SEC). The SEC regulates the variable annuities. The fixed annuity is not controlled by the SEC and is not a security.
What gains more interest an ordinary annuity or an annuity due?
ordinary annuity
What is monthly annuity?
The option to get annuity every month is called monthly annuity.
What are the different John Hancock variable annuities?
There are two types of annuities at John Hancock Annuities Qualified annuity doesn't provide any additional tax advantages Non-qualified annuity avoids income tax fees until distributions are made.
