by Annuities Explained on May 1, 2010
Aviva is one company that makes it super-easy to purchase annuities because their management of annuities is so flawless. Some of the examples of the annuities forms they have on their website to download and help you process your annuities are the electronic funds transfer form, request for service form, required minimum distribution request form, systematic withdrawal form, transfer of ownership form, trust verification form, W-9 taxpayer id form, withdrawal or surrender form, and more to help you make the management of your annuities as precise, detailed, and perfectionist as you are about managing your finances. In other words, Aviva gets it. You want to have perfect control over your annuities.
Aviva offers select annuities categories that appeal to different types of audiences. There is the immediate annuity is an individual putting a lump sum of money away and then having a guaranteed stream of income immediately. This is a great deal for old people. People are living longer these days. This income would be guaranteed for the life of an individual. This is a great advantage.
An index annuity allows the interest to be calculated based on the movement of the index in the stock market, but the principal is not affected by the movements in the market. A traditional annuity is small, but a better annuity is an index annuity that gives you the potential to earn a lot more.
A deferred annuity is a place where you have set a certain amount of money and you are watching it grow. After a certain amount of time, you are guaranteed income that you can take out of that. You don’t have to pay taxes on the interest you earn until you make a withdrawal. The flexibility to make withdrawals from time to time helps you cover expenses as you need them. There is also a death benefit to a deferred annuity. You can leave it there, watch it grow, and in the event of a death, pass it on to a family. Giving your family everything that you can give them with your annuity is one reason that the deferred annuity is such a good deal.
What else can Aviva annuities do for you? Couples can set aside money into an annuity and the plan would be to use it when they retire so that they can live in the lifestyle that they were accustomed to before they retired. Sometimes, children come along, and the annuities can come in useful then so they can go to college or whatever they want to do to further their lifestyle in a manner that is befitting them. The annuity can be used for whatever they want so that if a daughter has an education that she needs to be paid for the annuity can be deferred to the education fund of the children. There are other big expenses with having children like weddings and helping them with buying a home. These are all things that annuities can help finance.
by Annuities Explained on March 26, 2010
Immediate annuities are a way to defer income taxes and to increase monthly income. These annuities are annuities funded with a large sum of money and available to be drawn on immediately. Immediate annuities are a contract between the insurance company who holds the funds and the owner who deposits the funds. Usually these are funded from an IRA or 401(k) upon retirement for two reasons, to defer income taxes and to increase monthly income.
When the funds of an IRA or 401(k) are withdrawn from the plan and converted to funds available to the owner, income taxes are due on the full balance available. This additional income could move a holder into a higher income tax bracket and reduce the amount of money available for investment. By rolling these accounts into an immediate annuity, the only income tax due is the tax due on the payments received. This defers the balance of these taxes to a later date. Immediate annuities are therefore a wise tax savings strategy for many investors.
Immediate annuities allow for payments to start right away. Payments can be set up in a number of ways, depending on that holder’s desires. A financial advisor will outline all the choices and assist the investor in choosing the one that best fits the investor’s financial goals. Most holders take their payments monthly; however, quarterly, semi-annually or annually payments can be requested. The payment received will depend upon the amount invested, in what time frame the owner wants to get the money and the rate of return on the account.
These annuities can be either a fixed annuity which is a fixed rate of interest on the funds left in the account or variable annuities where the return depends upon the investment in the stock market. With a variable rate, the investor accumulates the profits or losses of the investment. This is somewhat more risky type of investment as compare to a fixed annuity. Different insurance companies have different interest rates, expenses and fixed costs with these policies. It pays the holder to shop and compare different options before signing any contract. The contract will state all the terms of the agreement, when the payments are to be made to the holder, the amount of the payment and for approximately how long these will continue, how the income on the plan is to be computed and accumulated, any charges to the account, what happens when the holder dies, if any changes can be made to the agreement and how these changes can be made.
Immediate annuities are annuities funded with a large lump sum usually from a retirement account like an IRA or 401(k) and start making payments to the owner right away. There are wonderful boost to many retirement plans by providing additional income for many years in a safe, secure way and conserving money by delaying payment of income taxes. If you are considering a retirement plan then you should consider immediate annuities.
