To begin with, an annuity can simply be defined as a monetary accumulation for retirement. This is an excellent way to ensure that even in the so called sunset years you and any of your dependents are adequately covered. Annuities can be turned into a form of guaranteed income for the retirees and is great if for nothing else, one’s peace of mind even as the years trickle by.
There are numerous opportunities available from New York Life in as far as annuities are concerned. With the deferred option there is the advantage of tax deferral and there are two variations in this category namely the fixed and variable. With the fixed interest deferred annuities there is a guaranteed fixed income but the cash is taxed on withdrawal. This is a better alternative as opposed to having the cash taxed every other month as with regular income because of inflation and other factors that may not be in the investor’s control. Under the fixed interest deferred policy there are numerous sub categories each with their own unique advantages. The main one is the preferred fixed annuities and one of its major benefits is the 60 day lock in period for exchanges, transfers and roll-overs.
Other advantages that his policy has is a minimal withdrawal amount of 100 dollars and no annual policy maintenance fees. As with all other policies the beneficiaries you receive the policy’s full value should the policy holder die. When it comes to variable annuities on the other hand, the premium is paid to the New York Life Investment Company and once the policy holder retires then the company is able to pay out a monthly income to the retiree. This guarantees the retiree that they will continue to receive an income long after they have stopped formal work as the cash accumulates on a tax deferred basis.
Worth noting however is that, even though in both cases the tax may be deferred, it is still calculated when the cash is withdrawn as is any outstanding amount to the IRS. The latter tax version is charged if the client chooses to withdraw some money before they reach the age of 59 ½ years. Even though with the other policies, the money is put in virtually risk free, when it comes to the investment markets there is always a risk the client should be aware of. These risks come about as a result of fluctuations in the markets and any fees or expenses that may be attached to the policy.
There are numerous benefits to be enjoyed by anyone that wishes to invest with New York Life Variable Annuities including a payment of all benefits to the deceased’s’ family, access to the money invested and even interests gained that can be used in other types of businesses. If these are benefits that are important to you and your current investment goals then New York Life Investment company is a very good choice.