Avoid Annuity Tax Problems Millions of investors own retirement annuity accounts but few are aware of the tax implications when the annuity is passed to an heir or beneficiary. A little known tax fact is that income tax on an individually owned annuity can be postponed only if the account owner’s spouse is named as the sole beneficiary. If the annuitant is not married, the … [Read more...]
Annuity Vs. Mutual Funds
Many investors tends to compare annuities and mutual funds for retirement planning. Considerations include risk tolerance--how comfortable you are with potentially losing your investment--and short- and long-term investment goals. Fees and the taxes also play a role. Types An annuity is an agreement with an insurance company. You pay a fee up front and receive structured … [Read more...]
Different Types of Annuities
There are several different types of annuities available for investors. Each one has different features and meets different investment needs. The two major types of annuities are fixed and variable. A fixed annuity offers a fixed rate of return over a period of years, while a variable annuity's rate of return changes, depending on how well sub accounts … [Read more...]
Pros and Cons of Variable Annuities
Variable annuities are offered by insurance companies as retirement investments. Variable annuities are similar to mutual funds with some significant differences, most substantially, regular payments after retirement. Prospectus Insurance companies offer variable annuities with varying stipulations attached. It is advisable to review the prospectus carefully … [Read more...]
Variable annuities v/s Mutual Funds
Annuities are a type of financial product. An annuity is an agreement to pay the holder (or, in some cases, multiple holders) a certain sum of money on a regular basis until the holder dies. In the United States, they are typically issued by insurance companies because the company paying out the annuity is essentially betting against the holder living for a long … [Read more...]