Author Archives for alexhouse
October 25, 2013 8:35 am
Published by alexhouse
If you own, or are considering buying, a deferred annuity and are thinking of having a trust own or be the beneficiary of that annuity, you need to be aware of the tax consequences. In this article, we’ll examine those consequences. But before we start, we need to be clear on two things: First, the author is not an attorney and is not giving you tax or legal advice. You should consult your legal advisor for that. Second, the tax treatment describe here applies only...
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October 24, 2013 10:12 am
Published by alexhouse
Question: I’ve been trying to do some research on fixed rate products, and want to know the difference between a Traditional Fixed Annuity and a MYGA annuity. What is the difference, if any? from Robert in Chicago, Illinois Answer: Good question Robert, and yes there are distinct differences between Traditional Fixed Annuities and MYGA (Multi Year Guarantee Annuities) annuities or sometimes called fixed rate annuities. Let take a closer look at both from an excerpt from my book, The Annuity Stanifesto. Traditional Fixed Annuity Traditional...
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October 21, 2013 12:36 pm
Published by alexhouse
So the latest ‘shutdown’ has happened and fortunately has finally gone away. What does mean to us and how will it or potential future shutdowns affect your investments and your retirement plan going forward? We have had calls from concerned clients wanting to know if their ‘money’ is safe. The short answer, in our opinion, is that it depends on the following: Where your investments are held What you think will happen to the markets Firstly, most of our clients are invested in Fixed Index...
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October 17, 2013 5:43 pm
Published by alexhouse
Question: Every agent I meet with tries to sell me a variable annuity or indexed annuity. All I really want is a fixed rate guarantee. Is there an annuity that actually works like a CD? from Bill in Matthews, North Carolina Answer: Yes Bill, there is an annuity structure that functions like a CD. That type of annuity in the industry is referred to as a MYGA. MYGA stands for Multi Year Guarantee Annuity, but it is also appropriately referred to as a Fixed Rate Annuity. ...
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October 16, 2013 3:09 pm
Published by alexhouse
Have you ever considered why an industry that offers dependable transfer-of-risk focused solutions to those interested in protecting their retirement assets can generate so much hate? The industry being referenced is of course the Annuity Industry, which somehow has many people bashing it….many of which are not even exactly sure why after getting past the “annuity hater talking points” described further in this article. So why is the annuity industry receiving such flack? Is it justified? Who is spreading the sour milk? First, this article...
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October 14, 2013 1:17 pm
Published by alexhouse
A recent study conducted by the Society of Actuaries and the Stanford Center on Longevity attempts to equip employers and plan sponsors with information on RIGs (Retirement Income Generators). An R.I.G. is an annuity, which they conclude produces higher income than traditional investment income. In this educational video, Rob Brinkman provides history backgrounds and overviews of both Defined Benefit plans and a Defined Contribution plans. Further, he will help you understand the study’s conclusion and explains why the study is titled: the Next Evolution in...
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October 11, 2013 10:28 am
Published by alexhouse
Written By: Lyndol Anderson in Abilene, TX For persons interested in setting up an annuity, knowledge of the difference between an owner driven contract and an annuitant driven contract is very important. It is sometimes very hard to distinguish but the differences between the two can have an undesired effect upon control of the contract and the distribution of the account value. The core discrepancy between the two styles of annuity contracts comes into play when there is a death of the owner and/or annuitant....
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October 10, 2013 12:40 pm
Published by alexhouse
Annuities are the curse word of the financial industry. Because of decades of bad selling practices, annuities have earned their bad reputation as “too good go be true” products that aren’t what they were pitched to be by the typically aggressive annuity agent. This negative stigma is unfortunate because annuities have their appropriate place in a lot of portfolios if you fully understand how they work, and how they should be allocated to compliment your current holdings. The past is the past, so let’s take...
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October 7, 2013 8:00 am
Published by alexhouse
Have you been sold or “pitched” an annuity and you have no idea if it is the right kind of annuity for your specific needs? As you hopefully know, there are numerous types of annuities that are designed to address a specific risk or groups of risks that many retirees face. A set of pros and cons for one annuity type is often completely different when analyzing benefits and features of other types. Education is key, and the video below does a great job in...
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October 3, 2013 2:40 pm
Published by alexhouse
Question: Why would anyone buy an immediate annuity? What’s the purpose of it? Isn’t it just getting your money back? from Taylor G. in Los Gatos, California Answer: Interesting questions Taylor, but very good ones. An immediate annuity is formally called a Single Premium Immediate Annuity, and also known as an income annuity. It is the original annuity product and was first introduced in Roman times. People buy immediate annuities because they are looking for a pension type income stream. They want to make sure...
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