August 9, 2013 7:38 am
Published by alexhouse
Question: The stock market is close to it’s all time high, however some members of the media and economist are saying we are going to be having a major down turn in the economy soon. What are your feelings? from Cindy in Hill, NC. Answer: I have been in the Financial Services business for twenty years and have watched the markets closely. I am not an economist and cannot predict what may or may not happen. People’s risk tolerances are different and a lot depends...
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August 8, 2013 9:45 am
Published by alexhouse
Question: How are annuities taxed? from Darrell in Phoenix, AZ Answer: That’s a pretty broad question Darrell, but and extremely important one. Let me get right to the point when it comes to annuities and taxes. Always use a CPA or qualified tax professional for any type of tax questions that are related to annuities. Never take an agent’s word for it. I probably know more about annuities and taxes than most (heck, I’m Stan The Annuity Man!), but even I defer all questions to...
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August 7, 2013 12:04 pm
Published by alexhouse
By Marvin Hurwitz in Baltimore, MD Ever since I started as a financial services and retirement advisor in the early 1980s, I have read numerous reports and heard from many so-called experts and financial planners that tax-deferred annuities should not be the source of funding IRA accounts. The reason for not using annuities in IRAs is that vehicles such as annuities and tax-free bonds are already tax-advantaged. So why take an investment that is either free of taxes (municipal bonds) or tax-deferred (annuities) and use...
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August 6, 2013 4:29 pm
Published by alexhouse
With regard to “who gets the money” in a deferred annuity, the answer is not quite as simple as many believe. The simple answer is “the beneficiary named in the policy” and that’s true much of the time – but not always. Let’s start with some basics in annuity contracts: –Annuitant: Person (must be a human being) whose age and sex determine the amount of income payments. –Owner: Person or entity (in need not be a human being) who owns the rights in the annuity...
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August 6, 2013 8:34 am
Published by alexhouse
Written By: Barry Goldwater in Newton, MA As a planner, I talk to people every day about financial priorities. It’s the usual stuff; retirees who need income, people changing jobs want to understand rollovers, young families wanting life insurance. Financial priorities are where you are right now in your life and they usually change as you live longer. Whatever your financial priority, you still need the right strategy creatively getting you to where you need to go. I say creatively, because there is always more...
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August 5, 2013 11:40 am
Published by alexhouse
Written By: The Annuity Guys Apples and oranges – what do they have in common? Both are fruits! Why would we start a discussion about annuity earnings with apples and oranges? When people start looking at annuities, they invariably want to compare them to mutual funds or other securities. Commonly, they will start the discussion about the merits of a particular annuity by asking about the “upside” or growth potential. Let us state this clearly – thinking of annuities as accumulation products by comparing them to securities is just plain wrong in...
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August 2, 2013 2:40 pm
Published by alexhouse
Written By: Clif Albino in New Berlin, WI Let’s say you have two uncles. One is Jarvis who just passed away and left an inheritance of $100 K. The other uncle is Sam, who always demands money. A fun little math aid will show how well the money is being managed. Take 72 and divide by the interest rate. That shows the number of years for the money to double. It is not perfect but it is close. At 8%, money doubles every 9 years....
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August 1, 2013 2:10 pm
Published by alexhouse
Question: Should I be concerned that a hedge fund owns an annuity company? My local agent is recommending an annuity that is owned by a hedge fund, and he says that it’s a good thing. What do you think? from Peter in Salt Lake City, Utah Answer: That’s a very good and extremely timely question Peter. In the past 2 years, almost 30% of all indexed annuity carriers have been purchased by private equity firms and hedge funds. That’s a pretty big market share in...
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July 31, 2013 9:30 am
Published by alexhouse
Written By: Allen Trimble in San Antonio, TX Annuities are often touted by insurance agents as the “be all, end all” investment. Want to grow your money? Great! You can invest in the stock and bond markets or even various alternative asset classes, through variable annuities, if you are willing to take risks for higher potential growth. Don’t want to risk losing money in the markets, but not happy with CD rates? No problem. You can generally earn higher interest in a fixed-rate annuity, plus...
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July 30, 2013 2:46 pm
Published by alexhouse
Question: John, I am 55 years old and have a $12,000.00 CD at the bank that is paying less than 1% a year in interest. I do not need the money until I retire at 66. Do you have any options that could provide a better interest rate? from David G. in Monroe, NC Answer: Over the last ten years banks reducing their interest rates on CDs, checking and savings accounts to less than 1% has become a common occurrence. During this time life insurance companies...
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