November 2006 - Posts

posted Thursday, November 30, 2006 9:00 AM by Chris Ford :: 0 Comments

How an Annuity is Structured

In general, there are three parties to an annuity (plus the insurance company): the owner, the annuitant and the beneficiary. The owner controls incidents of ownership in an annuity. They have the right to the cash surrender value. They can also name Read More
posted Monday, November 27, 2006 9:00 AM by Chris Ford :: 0 Comments

The Power of Tax Deferral in an Annuity

The ability to shelter your earnings from the impact of taxes is one of the most powerful tools available for helping you to build and preserve wealth for retirement or other long-term goals. Without the continuous drag of taxes, your money grows faster. Read More
posted Thursday, November 23, 2006 9:00 AM by Chris Ford :: 0 Comments

How can I access my money in an Annuity?

Most annuities allow withdrawals at least once a year (usually up to 10% of the accumulated value in your annuity) without a company charge. Another way to receive income from your annuity is through systematic withdrawals. A Systematic Withdrawal program Read More
posted Monday, November 20, 2006 9:00 AM by Chris Ford :: 0 Comments

Tax Advantages During Payout Phase of an Annuity

When you buy an immediate annuity or "annuitize" a deferred annuity, a portion of each payment is considered earnings and a portion is tax-free return of your principal. You are only subject to taxes on the portion of each payment that represents earnings. Read More
posted Thursday, November 16, 2006 9:00 AM by Chris Ford :: 0 Comments

Annuity Payout Options

Whether you're buying an immediate annuity or converting a deferred annuity into income payments, your options are essentially the same. You can choose to receive payments monthly, quarterly, semi-annual or in annual installments. You receive a specific Read More
posted Monday, November 13, 2006 9:00 AM by Chris Ford :: 0 Comments

The Differences Between Fixed and Variable Annuities

Fixed and variable annuities differ in the way they generate earnings and also in the amount of risk involved. When you buy a fixed annuity, the insurance company guarantees you an interest rate for an initial period of time. At the end of this initial Read More
posted Thursday, November 09, 2006 9:00 AM by Chris Ford :: 0 Comments

TOP 10 INDEX ANNUITY MYTHS

Myth #1 - Every annuity is a variable annuity. The performance of a variable annuity is based on how the stock market performs. Fixed and immediate annuities are not based on stock market performance. They offer guarantees through fixed minimum interest Read More
posted Monday, November 06, 2006 9:00 AM by Chris Ford :: 0 Comments

Pension Protection Act of 2006: How does this affect Annuities?

In July 2006 the House and Senate passed the PPA of 2006, when Pres. Bush signs it will be law. New permanent changes through Economic Growth and Tax Relief Reconciliation Act (EGTRRA): The IRA contribution limit increases, increased elective deferral Read More
posted Thursday, November 02, 2006 9:00 AM by Chris Ford :: 0 Comments

Equity Indexed Annuities- Short Term Surrenders.

When shopping for an EIA consider a short term product. Shorter terms allow for the freedom to re-evaluate financial situations sooner. Some insurance companies are now offering contracts with durations as short as three years. We all want to opportunity Read More