What are your options on lump sum annuity?
Posted on May 16th, 2010
We work all our lives to reach age. All throughout, the plan is to have a peaceful time in one’s prime. But in order to live that picture postcard life there are certain important decisions that have to be thought of. How you receive your pension is an important one. Would you like to receive it as a lump sum or would you prefer a fixed interest rate, payable monthly?
If you do decide to opt for a lump sum payout, this could result in a substantial amount of money. You will have to make the right plans for investment. This could mean hiring someone with the capabilities of planning your finances long term. You, after all, will not be having a monthly salary drop into your account anymore. < Read more…
The risks involved with annuities
Posted on May 16th, 2010
Though the concept of annuities is a common one, you have to understand that there are certain risks associated with it. To begin with you have to deal with a range of taxes when you decide to withdraw the money. There is no such thing as capital gains for annuities. Irrespective of the kind of account you hold, the money has to be withdrawn as regular income. All of the money, except your profit portion is taxable. Should you not have withdrawn the money before your , it automatically becomes a part of your estate and runs the possibility of being taxable under estate laws.
If you have invested in a deferred annuity, then the amount is already taxed. Read more…
Tags: Annuities
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Staying abreast of annuity rates
Posted on May 16th, 2010
With the recent fluctuations of the economy as well as the looming credit crisis, it was but natural that annuity rates take a beating. One of the first moves by the government and the Federal Reserve were to bring down interest rates in order to level the credit crisis that had the nation in its grip. This of course, did not bode well for bank investors. With inflation also playing a role, the returns from the bank look even bleaker.
In terms of investments, stocks and bonds too don’t seem to have much appeal. This includes to the conservative investor as well. One of the best forms of savings in the current economic situation is through fixed annuity rates. S Read more…
Tags: Annuity Rates, Rates
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When does annuity get taxed?
Posted on May 16th, 2010
Following tax laws to the T is something that very few people can boast of. Among the several options that are available, the deferred tax growth of an annuity account is what interests people the most. For the duration that the money lies in an IRA like account, the entire figure is not taxable. But you have to understand that at some point, taxation is going to take place.
A deferred annuity remains untaxed for the time that it is accumulating. As your interest compounds you don’t have to worry about it being tax. The taxation laws come into play in the next phase, when the money has to be distributed or paid out. Depending on your choice, this could be a lump sum payment or a fixed monthly interest rate one. < Read more…
Tags: Annuity, Annuity Get
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Understanding fixed annuity
Posted on May 16th, 2010
The simple premise of a fixed annuity is that you pay an company a monthly premium. In exchange, the company assures you of a fixed monthly income over a certain number of years.
Within the ambit of fixed annuities are several choices. You can choose, for example, a single premium payment where the payouts to you will begin immediately. If you would like to defer the payouts a bit, you can opt for them to begin at any date. This means that if you would like to hold on till the time of your , you can do so. This is often a plan for many people.
Once annuity payouts begin, they remain steady. Irrespective of recession or inflation, you can expect your payout to happen on time. Read more…
Tags: Annuity, Fixed Annuity
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Bernheim, 85, bitter on leaving Italy’s Generali
Posted on May 16th, 2010
French financier Antoine Bernheim, stepping down from the helm of Generali on Saturday, charged he was forced out of the Italian insurance giant by foes who used his advanced age as a pretext.
“It appears that today, at age 85, I am an old man in his dotage,” Bernheim said in an emotional speech to shareholders. Bernheim hands over the reins of Europe’s third largest insurer to Cesare Geronzi, head of Italy’s leading investment bank Mediobanca.
In a barb aimed at Mediobanca, Generali’s largest shareholder with a stake of 13.2 percent, the Frenchman recalled that Enrico Cuccia was 93 when he gave up the helm of Mediobanca. “It is sa