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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
How is the future value related to the present value of a single sum?
The present value is the reciprocal of the future value.
It would depend on your level of withholding and whether or not you are taking taxable distributions from your annuities. If you have other income that is not subject to withholding, that would likely require you to pay quarterly estimated taxes. On time and adequate quarterly payments will help you avoid any tax penalties for late payment.
Can you sell annuities with a life insurance license?
Depending on your license you may be able to sell fixed annuities. Variable annuities require Series-7 license however
What are five different financial applications for the time value of money?
Equipment purchase or new product decision,
Present value of a contract providing future payments,
Future worth of an investment,
Regular payment necessary to provide a future sum,
Regular payment necessary to amortize a loan,
Determination of return on an investment,
Determination of the value of a bond.
In joint life annuity one person dies does survivor get lump sum?
No, not unless the survivor asked to surrender the policy. If the survivor wants a lump sum, it is available.
What percent is Inheritance Tax in pa?
As of July 2010
Inheritance tax is imposed as a percentage of the value of a decedent's estate transferred to beneficiaries by will, heirs by intestacy and transferees by operation of law. The tax rate varies depending on the relationship of the heir to the decedent.
The rates for Pennsylvania inheritance tax are as follows:
0 percent on transfers to a surviving spouse or to a parent from a child aged 21 or younger;
4.5 percent on transfers to direct descendants and lineal heirs;
12 percent on transfers to siblings; and
15 percent on transfers to other heirs, except charitable organizations, exempt institutions and government entities exempt from tax.
Property owned jointly between husband and wife is exempt from inheritance tax.
Inheritance tax payments are due upon the death of the decedent and become delinquent nine months after the individual's death. If inheritance tax is paid within three months of the decedent's death, a 5 percent discount is allowed.
Is a federal CSRS annuity considered an employee retirement system for Maryland State Tax purposes?
CSRS is Civil Service Retirement System. Form 502 is Maryland Resident Income Tax Return. Subtractions from Income includes Pension Exclusion, which allows you to subtract some of your taxable pension and retirement annuity income.
To apply the Exclusion, two conditions must apply. One, on the last day of the tax year, you were age 65 and above orcompletely disabled or your spouse was completely disabled. Two, the taxable pension/annuity included on your federal return was from an 'employee retirement system'. Form 502 defines employee retirement system by what it isn't. It doesn't include an IRA (traditional, Roth), a Keogh Plan, a simplified employee plan (SEP), or an ineligible deferred compensation plan.
For more information, go to website for the Comptroller of Maryland/Revenue Administration Division at individuals.marylandtaxes.com.
You may contact Taxpayer Service in several ways. One, email at taxhelp@comp.state.md.us. Two, phone at 1-800-MD TAXES (1-800-638-2937) or (410) 260-7980. Three, mail at Comptroller of Maryland, Revenue Administration Center, Taxpayer Service Section, Annapolis MD 21411.
Which financial company is called CNI?
There are a few financial organizations with the initials/reference to CNI including the following:
* Century National Insurance (insurance)
* Clarendon National Insurance (insurance)
* Columbia National Insurance (insurance)
* Consolidated National Insurers (insurance and reinsurance)
* CNI Charter Funds (funds)
* City National Investments (various)
* Capital Network Incorporated (corporate fund management)
Where can you put your money to earn monthly income besides the annuity CD stock market?
As retired employee in addition to investing in stocks I have deposited a reasonable amount in banks to get monthly interest, and kept some amount in the shape of liquid cash to meet any untoward emergencies.
If 5 year annually annuity had a yield at 6 percent what its duration?
BY Gautam Brahma
Duration of a level annuity is given by the formula
( 1+yield/yield )- (No of payments)/{(1+yield)^no of payments -1}
i.e (1.06/.06) - (5)/{(1.06)^5-1}
i.e 2.88 years
What is the formula for present value of ordinary annuity?
A = Present Value
R = Amount of Ordinary Annuity
j = %
t = term
m = periods (annually/ semi-annually/ quarterly)
i = j/m
n = tm
A = R {[1-(1+i)-n] /i}
Formula of present value
If I have the decision to take 1,000,000 in a lump sum or 80,000 ordinary annunity for the next 30 years at 8% interest rate, which of the two opitions should I take and why?
138645
85,109 if the payments are received at the start of each year and 78,804 if they are received at the end of each year
7,398,000
What is the present value of a 10-year ordinary annuity of 20000 using a 7 percent discount rate?
Year Amount Disc Rate Present Value
1 20000 1.0700 18692
2 20000 1.1449 17469
3 20000 1.2250 16326
4 20000 1.3108 15258
5 20000 1.4026 14260
6 20000 1.5007 13327
7 20000 1.6058 12455
8 20000 1.7182 11640
9 20000 1.8385 10879
10 20000 1.9672 10167
Total PV 140472
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Who sells inflation adjusted annuities?
The answer depends upon what you mean by "inflation adjusted annuities"?
Assuming that you mean an annuity where the annuity payment (the amount paid regularly, under the payout arrangement elected, to the contract owner) will be adjusted in accordance with changes in the Consumer Price Index and that "who" means "which insurance carriers", the answer is "almost nobody". Last time I looked, Vanguard sold an immediate annuity where payments would be adjusted UPWARDS in accordance with the CPI. And I recently learned that the Principal offers a SPIA where payments will increase by the CPI. I don't know of another carrier that offers such a contract. A number of carriers offer annuity payouts that will increase by a PREDETERMINED PERCENTAGE each year, but many do not.
What is the relationship between the present value factor and annuity present value factor?
Present value annuity factor calculates the current value of future cash flows. The present value factor is used to describe only the current cash flows.
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.
On a 5000 annuity compounded daily what would be the annual percentage rate?
Depends on the daily percentage rate.
What is meant by weekly overhead?
weekly overheads also known as fixed costs are costs which do not vary with the number of items sold or produced in the short term.
things such as rent must be paid whether or not the business is producing a unit or selling a unit/making any income at all. these costs must be paid.
