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Annuities
Annuities are financial products designed to grow an individual’s funds and later, upon annuitization, to distribute payments back to the individual over a specified period of time. It is mainly used to secure a steady flow of cash during retirement.
849 Questions
Accountants must have a working knowledge of compound interest, annuities, and present value concepts because of their application to numerous types of business events and transactions which require proper valuation and presentation. These concepts are applied in the following areas: (1) sinking funds, (2) installment contracts, (3) pensions, (4) long-term assets, (5) leases, (6) notes receivable and payable, (7) business combinations, and (8) amortization of premiums and discounts.
The answer to that question would depend on what savings vehicle your IRA is in. If it is tied to the market I would say it is not safe. If it is with a bank you are suffering from a lack of interest. If it is in a fixed annuity it is very safe. However, what are you getting for interest? Can you move the money without taking a hit? Currently there is an IRA that pays a guarantee of 6% for 10 years. In my opinion that is wise and very safe!
What is the difference between absolute return and annualized return?
I believe that absolute is a positive word leading to a positive action. If you have something that gives you a absolute return, you will probable get the return when it happeneds.
I believe that the annualized report happens when at the end of the business physical year, no matter what the condition of the company is in.
What is the future value of a growing annuity with a present value?
The present value is what it is worth today minus any surrender charges. The future value is what it will be worth in the future at a given interest rate and again minus any surrender charges if applicable.
The insurance company surrender charge is not deductible. Nor is the 10% federal penalty.
Who gets the annuity if the primary beneficiary dies after the owner dies and didn't file a claim?
The primary beneficiary's estate could file a claim and the proceeds would be distributed to their heirs at law if the estate was probated. If no claim is made, the proceeds would escheat to the state after a statutory waiting period has passed and the funds remain unclaimed.
not safe at all. if AIG folds or goes under, you wake up one morning and the company is closed lie ENRON, and WorldCom. then you lose all your money.
Will you lose your annuity if aig goes under?
I am looking for answers to this myself, AIG annuities is a subsidy of AIG and should be insulated from the credit concerns of the parent company, however NY state's actions of allowing AIG to use policy holder's account as collateral clouds the issue. Aig personnel are not able to answer this question either, this unpercedented situation is unfolding so quickly, they have not been briefed. They did advise however that the principal is guaranteed but with 20 years of interest in the account that is little comfort. What can you do? by the time you are able to transfer the funds out it will be a moot issue, they will either have been bailed out or in bankruptcy.
Can you redeem a CD early because of Death of account holder?
You can always redeem a CD regardless. You don't lose the money, just future interest.
How should you diversify an annuity acct in a failing market?
It depends on when you will need your annuity money. How far off from retirement are you or are you in retirement? There are very attractive guarantees out there now like 6% guaranteed over 10 years. If you need money sooner than maybe put some in at the 6% and some in a shorter period. It is all based on your needs.
Are annuities backed by state or federal governments?
ARE ANNUNITIES BACK BY THE STATE GOVERNMENT OR SOME OTHER INSURSNCE COMPANIES.
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What insurance companies offer long term care annuities?
Forethought Financial Group will soon offer ForeCare which is an annuity with a LTC rider with all the benefits available under the Pension Protection Act of 2006.
What investments could yield 10 percent returns monthly?
You can get 10%/month or more in relatively high risk investments, like Forex and other exchange markets. Good luck!
Differentiate between ordinary annuity and annuity due?
In an ordinary annuity, the annuity payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.
When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.
The natural downside of autumn is cleaning ponds of fallen leaves. Many people are outside raking leaves during the autumn season.
To foster team work means advocating for or encouraging people to work together as a team. This yields great results since no one wishes to disappoint the team.
Is mortgage an example of annuities due?
No, mortgage payments are due in the beginning of the month like rent; however, the mortgage payment covers the previous month's interest and principle on the mortgage loan. Rent is an "annuity due" because it is paid in adavance to cover the next 30 days to follow.
