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2013 Vs. 2014 For Annuities By Phillip Wasserman
Whenever folks in the financing market, like financial coaches, talk abou...
compare them.
Low bond assets and a declining stock market have forced big insurers to re-evaluate their own
annuities pra...
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2013 Vs. 2014 For Annuities By Phillip Wasserman

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Whenever folks in the financing market, like financial coaches, talk about the "golden years", they ...

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2013 Vs. 2014 For Annuities By Phillip Wasserman

  1. 1. 2013 Vs. 2014 For Annuities By Phillip Wasserman Whenever folks in the financing market, like financial coaches, talk about the "golden years", they aren't referring to centuries or decades earlier. They're referring to this past year, when warranted payouts and benefits on lots of annuities were far more lucrative. A person (49 years of age) was assisted by a seasoned wealth manager to secure a contract for a fixed index annuity rate of an unbelievable 30 years, 8.3% with no financial risk to principal. Age is important, and at his age, he in all probability would not find even the worst type of secured income annuity. You will find yourself hard pressed to locate something next to that this season, though. Earning money by way of annuities is a completely different ballgame. As you can imagine, profitable opportunities survive, but not on the same levels. You can find 4 main types of annuities. The 4 Types of Annuities, As Outlined By Phillip Roy Financial Services : Fixed rate: The starting investment increases with a predetermined interest rate. Variable: The principal rises depending on the performance of a basic mix of stocks and bonds. Deferred: Calls for an upfront investment, with additional payments at some point. Immediate: Converts a preliminary down payment into monthly payments in the future. Phillip Wasserman says one interesting feature of annuities is that, as with IRA's, balances grow tax- deferred right up until withdrawals begin. After you retire, annuities can continue to earn money. They eliminate that overwhelming anxiety about becoming retired and running out of money. Variable annuities also resemble an Individual Retirement Account because withdrawals may start once you turn 59½. That's really the only likeness, however. Given a dizzying number of characteristics and restrictions, contracts for many annuities -- variable and otherwise -- can go for 400 pages or even more. These extensive contracts all have different key points, and with a lot of them, it's a difficult task to
  2. 2. compare them. Low bond assets and a declining stock market have forced big insurers to re-evaluate their own annuities practices lately, and some major firms, including Hartford Financial and Genworth Financial have elected to get out of the business or scale back. Those that are still in the field are making new agreements much less alluring by reducing advantages associated with them. For investors, however, all is not lost. With annuities, it's even now possible to find safe, long term opportunities. Most Effective Current Annuity Groups Deferred variable: essentially, in this kind of annuity, you first pay for installments into your annuity, and then later on get them as installments or a lump sum payment. Interest rates adjust based on various factors. Fixed index: this is when an insurance provider makes fixed dollar payments throughout the long term contract, normally right until death. Fixed deferred: much like deferred variable, except the rates of interest are usually exactly the same throughout. Immediate: the investor invests a substantial amount of money, and a set income is paid out till death. Longevity insurance: this is suitable for retirees concerned with outliving their savings. Retired people around the age of 60 can invest in longevity insurance and start to cash out the income in 15 to 30 years.

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