Deferred Annuities Archives - Annuity 123 : Annuity 123

Rebuttal to ‘Don’t Buy Index Annuity Article’ on AARP

Brent Welch | August 21, 2014 | Annual Reset, Annuity Bonuses, Annuity Caps, Annuity Fees, Deferred Annuities, Income Riders, Index Annuities, Participation Rate

In the May 2014 AARP magazine, Allan Roth set the tone for his article “Don’t Buy It”with a picture of Leonardo DiCaprio, star of the movie The Wolf of Wall Street. In the film, DiCaprio plays a dishonest, immoral and unethical investment banker. This “Wolf of Wall Street” ended up in prison for the rest of his life, convicted of felony charges, racketeering, extortion, and stealing money from the general public. He was a wicked and completely dishonest criminal, much like Bernie Madoff. Roth suggested...

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Is A Fixed Indexed Annuity Right for You?

Rick Hughes | July 18, 2014 | Annuity Basics, Deferred Annuities, Fixed Annuities, Index Annuities

What if you could have an investment that you knew you could not lose? Would this get you excited, or would you be thinking, “This is too good to be true”? I want you to imagine you and a friend are going to Las Vegas. This does not mean you are a gambler, but let’s pretend for a moment that you are sitting in Caesars Palace at the roulette table. The dealer tells you that you are in luck; he is going to let you...

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Fixed Indexed Annuities: Worry Free or Risk Filled Cash Ride?

Keith L. Collins | May 13, 2014 | Deferred Annuities, Fixed Annuities, Index Annuities

A survey by Financial Research Corporation showed that more than 36% of investors ask about the guarantees of Fixed Income Annuities. It is a fact that the collapse of several high profile corporations in the previous decade has severely shaken investors’ confidence over financial market investments. Most investors are now concerned about the safety of their investments. Fixed Indexed Annuities (FIAs) can be a great answer to a lot of worries of conservative investors. They offer protection from market volatility, interest rate, and inflation risks....

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Can Fixed Annuities Account for Inflation?

Stan The Annuity Man | February 20, 2014 | Deferred Annuities, Fixed Annuities, Inflation, Longevity Annuities, SPIA

Question: Inflation is something that worries me going forward. Can fixed annuities actually account for inflation? Is that possible? Eddie M. from Casper, Wyoming Answer: Great question Eddie, and I agree with you that the real possibility of future inflation is the financial gorilla in the room. I think everyone is concerned about it. Let me start by saying there is not an annuity on the planet that is the perfect solution to combat inflation, and no strategy anywhere can address hyperinflation. However, income annuities...

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Taxation of Annuities Explained

Jason Soloman | February 18, 2014 | Annuity Taxes, Deferred Annuities

Are you considering investing Non-Qualified (non-IRA) money in the Total Value Annuity, American Equity Bonus Gold, Allianz Core Income Benefit, Athene Choice 10, Security Benefit’s Secure Income Annuity, or any other deferred annuity? It may be a good investment for the savings and income portion of your money, but then again it may not. This article is intended to provide you with tax information that will help you make more informed decisions when deciding which investments will work best for you near or in retirement....

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Which Is Better For Future Income….Longevity Annuities or Income Riders?

Stan The Annuity Man | January 23, 2014 | Annuity Basics, Ask Stan The Annuity Man, Deferred Annuities, Fixed Annuities, Immediate Annuities, Index Annuities, Longevity Annuities

Question: I’m looking to set up a guaranteed lifetime income stream to start sometime in the future. Which is better, longevity annuities or income riders? from Tom in Portland, Oregon Answer: Excellent “head scratcher” Tom, and this is one of the most important questions currently in the world of annuities. What you are talking about is target date or income later planning. You want to plan a lifetime income stream to turn on in the future, and would like to be able to know to...

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Taxation of Deferred and Immediate Annuities Explained

John L. Olsen | January 3, 2014 | Annuity Basics, Annuity123, Deferred Annuities, Immediate Annuities, John L. Olsen, Member Posts

In the workshops and classes I teach, I often remark that “one good thing about deferred annuities is that they get tax deferral (that the interest earned is not taxed until it is distributed in a withdrawal or surrender); one bad thing about them is that they get tax deferral”. That’s not merely a lame joke. It’s a recognition that tax advantages always come with a cost. In the case of deferred annuities, the “cost” of tax deferral is twofold: All distributions from any annuity,...

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Meeting Long-Term Care Needs With Longevity Annuities

Todd D. Heckman | December 4, 2013 | Deferred Annuities, Long Term Care, Longevity Annuities, Member Posts, Todd Heckman

The number of older Americans age 65 and older living in the United States by the year 2020 is projected to be 54 million. This is an increase of 54 percent from year 2000’s population of 35 million. It is no secret that the growth in older persons, members of the “Baby Boomer” generation (born 1946-1964), will place a greater demand on health care services than any other generation before and probably afterwards. This includes the need for care provided in the home or a...

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What Are The Different Kinds Of Annuities?

John L. Olsen | November 18, 2013 | Annuity Basics, Annuity Definition, Deferred Annuities, Fixed Annuities, Immediate Annuities, Index Annuities, John L. Olsen, Member Posts, Variable Annuities

If you’re like most people, you find the subject of annuities confusing. Just the terminology would befuddle anyone – “exclusion ratio”, “annuitization”, “indexed”, “cap rate”, “participation rate”, etc. As if that weren’t enough, the terms are not applied uniformly. Some writers about annuities refer to the kind that produces an income immediately after purchase as an “immediate annuity”; others call it a “payout annuity”. “Equity index annuity” and “fixed indexed annuity” are used almost interchangeably to refer to the same type of contract. And some...

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Annuity Surrender Charges Explained

John L. Olsen | November 5, 2013 | Deferred Annuities, Immediate Annuities, John L. Olsen, Member Posts, Surrender Charges

Surrender charges are imposed by most, but not all, Deferred Annuities (Immediate Annuities generally impose no surrender charges because most Immediate Annuities cannot be surrendered for cash). It is vitally important that prospective buyers fully understand the impact of these charges on the Deferred Annuity’s cash surrender value, when they’re imposed, and when they’re waived. Some critics of annuities assert that surrender charges are wholly unattractive, that they always work to the buyer’s disadvantage. This is neither accurate nor fair. Let’s look, now, at how...

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