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An immediate annuity is something that will give you a stream of income for life. You can purchase them from insurance companies. They are great because even if you live to be 120 years old you will still get payments.

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13y ago

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What is an immediate annuity?

They are taxed according to the exclusion ratio


Application of annuities in financial management?

It would depend on weather it is an immediate or a differed annuity contract. An immediate annuity would provide guaranteed income for a specified number of years or over the life time of the insured regardless of how long the annuitant lived. A deferred annuity provides for long term tax deferred growth and if its not in a qualified plan the annuity holder is not limited to the amount deposited each year.


What are the different types of annuties available?

There are two types of annuities. The first type is called deferred annuity, with that annuity your money is invested until you are ready to make withdrawals, for example - after retirement. The second type is called immediate annuity, with that annuity you receive money soon after your investment.


What does it mean to have an insurance annuity?

An insurance annuity is a financial product in the form of an insurance product according to which a seller makes a series of future payments to a buyer in exchange for the immediate payment of a lump sum or a series of regular payments prior to the onset of annuity.


What is the difference between immediate annuity and deferred annuity?

First, the word "annuity" can be used for different things. Be sure to know what you're working with. Annuities are investments through insurance companies. There are good and bad. Annuities might ALL be called "deferred" because their earnings are tax deferred. You pay taxes on the earnings when you take money out. The IRS sets the rules. Annuity earnings WILL BE taxed, even if received in monthly payments or passed on to beneficiaries. Immediate and deferred refer to 2 different features of annuities. Deferred is taxes. Immediate is payments. If you place a lump sum with the insurance company, they can start paying you monthly payments based on that lump sum. If the payments start immediately, it is called immediate. If payments start later, it could be called deferred. Annuities can be wonderful or horrible, so do lots of good research.

Related Questions

What is an immediate annuity rate?

An immediate annuity is an annuity that begins making payments to you shortly after you deposit your money. The rate of interest you earn on this depends on age, payment options, and other factors.


what is an immediate annuity calculator?

An immediate annuity calculator will help determine your income when your annuity comes due. Find a reputable place to help plan your future. www.fidelity.com is a good place to reserach.


What is the payout for a 300000 immediate annuity?

2254


Where might one find a calculator for immediate annuity?

There are a variety of ways that someone can find a calculator for immediate annuity. Some of these places are; Forbes, Find, Immediate Annuities and Mini Web Tool.


How long should I expect an annuity payout to take if I retired in January of 2010?

You can annuitize with an Immediate Annuity to take income now. Here's some info on that consumerboomer.com/should-you-annuitize-immediate-annuity-income


Where can I find a great immediate annuity calculator?

YOu can go to the folllowing website to get a great immediate annuity calculator to help you with your new home purchase http://www.immediateannuities.com/


What is the accumulation period for an immediate annuity?

Immediate annuities can be annuitized immediately upon issue.


What is an immediate annuity?

They are taxed according to the exclusion ratio


Is there a free calculator for immediate annuity?

I also found these websites that offer online calculators; www.freeannuityrates.com/annuities/calculators/annuitycalculators and www.money-zine.com/Calculators/...Calculators/Immediate-Annuity.


How can I calculate immediate annuity rates?

Yes, there are several sites online in which you can calculate immediate annuity rates. One of which is www.immediateannuities.com. This particular site requires you to enter information from drop down menus and type-in prompts in order to calculate an annuity quote.


What is the largest annuity payout possible?

Annuities with the Highest Immediate Annuity Payouts and the Highest Annuity Interest Rates available. Immediate Annuities, Fixed Deferred Annuities www.jdsannuities.com/ The largest annuity payout possible is about 50% of your investment. You must get really lucky and you should understand investments comes with risk.


Can I use an immediate annuity calculator to calculate how much I will have for my retirement?

An imeediate annuity calculator are for people who are interested in immediate annuities. I would assume that you could use this calculator to calculate how much you will have for your retirement.