Annuities

Basically, no.

No. Taxes are obtrusive and should all be eradicated.

401K

Income, grant, allowance, proceeds, net...

Whole life insurance is a product that provides a death benefit, along with a feature that allows you to build up cash value. I am not exactly sure what you mean by Annuity Life Insurance, but typically speaking annuities are a type of insurance product that are geared primarily to build up investment value and then take out a guaranteed stream of income as a result.

Read more on what is whole life insurance below.

You should consult with an attorney who specializes in probate law in your area ASAP. The proceeds may have transferred to his parents' estates. In that case, the proceeds would pass under their wills or under the state laws of intestacy to their heirs at law. The attorney must review the policy, whether it was owned by your husband's estate and your state laws. You may need to take the matter to court.

There are basically two risks in life - that of dying early and that of living too long. Life insurance - basically term insurance - covers the former while endowment insurance covers the latter. But the question of living too long can not be easily covered by endowment insurance where the payout is immediate on the happening of the covered event, that is, maturity. The payment is in one lump sum mostly. Annuities are basically used to cover this eventuality of living too long, by paying money in installments spread over a long period of time - mostly till death. This method therefore forms the basis of pension business. The funding methods are also different - the collected fund is used to form a corpus from where the payouts are made. Therefore pension funds need long term investment avenues with good returns. After all nobody can be sure how long somebody will leave, but pension funds have to ens ure the payments till death - at the same rates as the first installment.

The assignee owns the annuity. This is done to protect the "tax-free" nature of the payments, as the claimant cannot have constructive receipt of the funds. Thus, the transaction proceeds as the defendant "assignor", assigns the liability to make future periodic payments to the claimant from itself to the insurance company's assignment corporation "assignee." The Assignment corporation purchases an annuity that will fund the periodic payments for the claimant. The claimant will not own the annuity, usually s/he will still have the ability to change the beneficiary, banking information, and address of record, but it depends on the assignment documents that are signed.

When are income taxes applied to the interest earned by business owned annuities

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.

I don't believe there is any difference.

annuity payments can be structured for 20 years certain or other term/period certain payouts. Other optional annuity forms of payouts are also available from insurance companies underwriting annuity contracts such as life and joint/survivor payout options.

True because theres so many wants and needs in this world.

Yes, it is possible that a risky asset may have a negative beta.

Given that beta measures "relative risk" to a particular market, index, etc., a negative beta suggests that the the particular asset class performs well when the given market (the market/index to which the beta was computed) performs poorly (negative coorelation).

Using the phrase "risky asset" only suggests that the asset's ability to return value to the investor is volatile.

For example, a new set of ETFs released in November 2008 track the Case-Shiller housing index. The first, UMM (NYSE), goes up when home prices go up. The second, DMM (NYSE), goes down when home prices go down. If we assume that the Case-Shiller index is the basis for beta computations, one would expect UMM's beta to be positive (2.0 since the securities have leverage of 200%) and DMM's beta to be negative (-2.0).

At the end of the day, negative beta opportunities are good in that they provide a way to diversify out different types of risk in a portfolio holding multiple asset classes.

My experience with them has been a nightmare. I signed up for an annuity with a 5% guaranteed growth per year no matter what the market did. However if the market did better than 5% I would reap the benefits. I would not be able to do anything with this money for 7 years. For instance, if you use $200,000 as your initial investment. If the market does bad your annuity value would be $210,000. Pay attention here as you have the option to take a lump sum or an annuity. Taking the lump sum would be the actual cash value. A bad market, say 10% loss and the lump sum value would be $180,000. Everything was fine the first year-bad market but annuity value did increase. Then the market tanked. I received a phone call from my bank telling me I needed to sign some papers which would actually increase my payout, the entire time being reassured everything else was the same. What Transamerica did was switch my policy. They 're-evaluated' my investment at the present value. In other words the dumped the guaranteed growth, knowing how bad the market dropped and knowing they had a losing policy on their hands. The bank has apologized stating they still don't see where in the papers these changes would take place. Transamerica has stead fastly refused to admit any wrong doing and refuses to correct anything. There is much more detail involved but the bottom line is a loss of about $45,000. Needless to say I would not deal with this company, they have some very deceptive practices. DO NOT TRUST THEM.

yes

I think that you mean income from a 300,000 capital lump sum. Correct? An annuity is when your capital is used to buy an income for life. There are two forms of annuity, purchased and compulsary. Purchased means you take your savings and buy an income for the rest of your life. A compulsary annuity is when your savings have been accrued in a tax exempt pension sceme and therefore you have NO CHOICE about buy an annuity with them.

Okay, whatever the type of annuity, you get the choice of what type of annuity you buy as follows:-

(1) Straightforward annuity. No guarantee. When you die, the income ceases.

(2) Guaranteed annuity. The income would be paid for 5 or 10 years whether you were alive or dead. If the latter, it would be paid to your estate for the residual period of the guarantee.

(3) Joint life annuity. If you are married and were to die first, the income would be paid to your wife until she died.

(4) Indexed linked annuity. The income would be increased at a maximum of 5% per year to offset increases to the cost of living.

Note that each time you add sophistication to your choice of annuity, the start level of the annuity would be lower.

Also note that annuity rates fluctuate in line with bank interest rates. You should shop around to find the highest annuity payer as rates differ between different insurance companies.

We've been dealing with WNL for nearly 30 years and cannot get an answer. Our only guess is Who would want to invest with AIG right now? We were never notified that AIG bought them out! Will update if we can get an answer out of them.

A major diversified, trans-national, integrated energy company, with national leadership and a strong environment conscience, playing a national role in oil security & public distribution.

250000.00

it is a scam. They want you to cash a check, then send them the tax on your larger winnings. guess what... the check will bounce. My nephew got sent this check, luckily he did not cash the check.

My mother is 75 and is facing foreclosure on her property. She is concerned of what the mortgage company can seize of her personal property, especially her IRA, annuity and car. What are they legally allowed to take?

Yes

Easiest way to find out status of pension would to be to ask the new corporate owner otherwise contact the Dept. of Labor or PBGC (Pension Benefit Guaranty Corp) both govt. agencies where employers file this information.

You do. You need to speak with your tax accountant and find ways to reduce your tax burden. The upside is that the transfer of wealth within the annuity avoids probate, both the time and the cost.