Why Accountants Have Trouble Understanding Annuities |
September 25, 2013 |
Member Posts, Miscellaneous Annuity Info
Written By: Larry Klein in Walnut Creek, CA I am a CPA (inactive) and fortunately also able to think outside the box. Many accountants think of investments only in terms of their Internal Rate of Return (IRR). The IRR for an investment takes into account: The amount you receive over the period you own the investment The amount you get back at the end Life annuities do not have any payment at the end as the payments cease at death. The IRR of a typical...
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Immediate Annuities Explained |
September 24, 2013 |
Annuity Definition, Annuity Guys, Annuity Videos, Immediate Annuities, Member Posts, SPIA
Provided By: The Annuity Guys In the golden era of career based retirements, everyone could count on a company paycheck for life in retirement. Unfortunately, fewer and fewer employees are leaving jobs with defined benefits programs that take care of their income and health benefits throughout their retirement years. So what options do workers who have invested a lifetime of dollars into 401Ks and IRAs have for lifetime retirement income? Watch as the Annuity Guys look at the gold standard of annuities – the immediate annuity, including...
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Stan The Annuity Man |
September 19, 2013 |
Annuity Basics, Annuity Definition, Ask Stan The Annuity Man, Fixed Annuities, Immediate Annuities, Member Posts, SPIA
Question: I have some serious health issues, and have heard about immediate annuities that have a higher payout if you are sick. I think that they are called “Rated” Single Premium Immediate Annuities. What is that? from Colin in Boise, Idaho Answer: Thanks for the question Colin, and I’m sorry to hear about your health issues. Your question is a good one, and most people in the annuity industry don’t even know this product exists. Some call this product a “Rated Single Premium Immediate Annuity”,...
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John L. Olsen |
September 18, 2013 |
Annual Reset, Annuity Basics, Annuity Caps, Annuity Definition, Index Annuities, John L. Olsen, Member Posts, Participation Rate
There are several different kinds of index annuities, but the “Annual Reset” type is the most commonly sold (and bought). The name refers to the interest crediting period – the length of time over which gains and losses in the equity index (often, but not always, the S&P500®) will be measured and index-linked interest will be calculated and credited. There are different types of annual reset annuities. Some measure monthly index movements, from which they calculate and credit interest annually (the “Monthly Sum” or “Monthly...
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Rob Brinkman |
September 17, 2013 |
Annuities in IRAs, Annuity Videos, Index Annuities, Member Posts, Rob Brinkman, Variable Annuities
When does it make sense to put an annuity inside of an IRA (Individual Retirement Account)? This is a frequent question and the answer lies in what you are wanting to accomplish with your particular investment. We all know that annuities are tax-deferred and so are IRAs. So, is an investor paying for tax-deferral unnecessarily when utilizing an annuity inside a qualified plan? In this video, Rob Brinkman explores this question and gives some answers to when it does and doesn’t make sense to put...
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Rob Brinkman |
September 16, 2013 |
Annuity Guys, Annuity Videos, Fixed Annuities, Member Posts
Provided By: The Annuity Guys If you are having trouble sleeping, you could count sheep or you could think about fixed annuities. Solid, unexciting, stodgy and downright boring are all wonderful terms to describe fixed annuities….along with safe, steady and simple. Fixed annuities offer competitive interest rates, typically a couple of percentage points higher than bank CDs and money markets. They were never designed to give returns comparable to the stock market, but this is due to the fact that they remove a layer of...
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Stan The Annuity Man |
September 12, 2013 |
Annuity Taxes, Ask Stan The Annuity Man, Life Insurance, Member Posts, Miscellaneous Annuity Info
Question: Is an annuity considered life insurance? Do they work the same? from Ted in Miami, FL Answer: Most people don’t know this, Ted, but annuities are actually issued from life insurance companies….so in essence they are life insurance products. However, annuities and life insurance are vastly different when it comes to how they are taxed. As a side note, when it comes to anything involving taxes, you should always consult with a qualified CPA or tax lawyer. Annuity agents are not tax advisors, and...
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Rob Brinkman |
September 10, 2013 |
Annuity Videos, Fixed Annuities, Index Annuities, Member Posts, Payout Factor, Rob Brinkman
In this video, you will learn some advanced annuity concepts, the pros and cons of annuities, and why annuities are similar to apples in the fact that there is only so much juice you can squeeze from each product. Given the large amount of Index Annuities available for investors, the average consumer can quickly get overwhelmed. This educational video walks the viewer through the different variables and how they affect one another inside an annuity contract. This educational video explains (in a very detailed, yet...
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Rob Brinkman |
September 9, 2013 |
Annuity Commissions, Annuity Guys, Annuity Videos, Member Posts
Written By: The Annuity Guys Most of the mainstream media decries annuities as bad investment choices sold by unscrupulous agents solely to earn high commission. CNN/Money even states “annuities frequently charge other high fees as well, usually including an initial commission of up to 10% of your premium or investment”. The key word in this statement is “up to” – the majority of fixed annuities today are in the five to seven percent range assuming the agent elects to take the commission up front. It is important to keep...
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Carl Ostenson |
September 5, 2013 |
Annuity Beneficiaries, Carl Ostenson, Member Posts
The short answer is “Maybe, but don’t do it just because you can. Do it if it’s the only answer to a problem and you know exactly what you are doing.” IRAs and 401ks will pass on by way of contract to whomever you name as the beneficiaries. They will bypass the probate process and the lawyers involved automatically. A trust does not have to be involved if there is a beneficiary form. Most of the time, you do not need to name a trust...
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