Annuity Resources - Page 2 of 4 - Tennessee Annuity Rates

Why Invest in Annuities? Because The Exclusion Ratios Means Tax-Exempt ROI

Why Invest in Annuities? Exclusion ratios are tax-exempt portions of your annuity return. For example, each annuity payment you receive can be split into two distinct parts. The annuity investment capital is one portion. The other portion is an additional amount that is taxed at the current income rate. This portion is interest that you’ve earned. Consequently, it’s taxed as regular income would be. The capital portion of the return is not taxed. The return on capital, or the additional balance after the principal capital is subtracted, is taxed. This is because it’s considered part of the annuitant’s gross income. What Is The Exclusion Ratio? The exclusion ratio is a calculable ratio used to identify the portion payout that is excluded from taxable income. The

Pros and Cons of Annuities

What are the Pros and Cons of Annuities? It may send your mind into an infinite loop to imagine using money to buy money products, but that’s just how the financial world works. And Americans did just that! In just the third quarter of 2016, USA investors analyzed the pros and cons of annuities and spent $51.3 billion on them. Sound like a lot? Maybe not. Turns out that we bought $58.5 billion in annuities in the same quarter of 2015, which represents a 12.3 percent decline in one year. What’s going on here? Have the tides turned or are more investments clogging the market and our wallets? Read on for a major return on investment. Pros and Cons of Annuities 101 Mastering annuities can

Does Your State Protect Your Annuities From Creditors?

Annuities are like other financial assets. Often times, litigation efforts and creditors are able to gain access to them. As a result, the money you worked hard for is at risk. Protect Your Annuities O.J. Simpson & Florida Exemptions For Annuities Remember O.J. Simpson? I’m not talking about the notorious car chase in the Ford Explorer. According to MarketWatch, O.J made some poor financial decisions in Vegas. Consequently, those decisions led to lawsuits that ordered him to pay back creditors. O.J. put most of his money in annuities in south Florida where he lived at the time. Lucky for him, statutes in the state of Florida shielded his annuities from being touched by creditors. “If the glove don’t fit, you must acquit” may as well be,

The Importance of Understanding The Different Types of Annuity

Understanding Different Annuities Receiving A Paycheck For The Rest Of Your Life Sounds Great, Right? This isn’t a dream. It’s actually possible thanks to annuities. Annuities are a form of life insurance. You pay a sum of money (called a single premium annuity, not to be confused with a SPIA). This can be either all at once or over a period of time (flexible premium annuity). In return, your money does not go down (only if you buy from one of our advisors), it only goes up (depending on the crediting option you choose). Also if you buy an income rider (you will pay a fee, should only be about 1%) you receive regular disbursements of that money until you’re no longer living. A staggering 84%

What Is A Tax Deferred Annuity?

Tax Deferred Annuities So you’ve decided to stop stuffing money under your mattress (or the bank account equivalent of putting it in a savings account with 0.000001% interest). Congratulations! Before you lose your motivation, let’s explore why a tax deferred annuity could be an ideal option for those funds. Although annuities are often associated with retirement income, you do not have to be on your way to your sunset years to purchase these products. Instead, read on to decide what’s the best investment for your needs. We promise this will make cents! Just the Tax Facts First up, you may have heard of tax-deferred annuities called by another name: “fixed tax deferred annuity.” For sake of brevity, we’re going to lop off the “fixed.” One

When is the Right Time to Get a Fixed Index Annuity?

Fixed Index Annuities (FIA) are growing in popularity. Positioned to take over all other annuity products in sales, FIA products are offering the best of both worlds for investors. Protect Principal, Spark Growth You can both protect principal and spark significant growth with an FIA product. One of the only downsides with FIA products is the incredible variety of crediting options available (how you make a return). With different formulas and competing companies offering the investment opportunity, it can be confusing to know when and where to buy. Financial advisors recommend the product for growth and protection. But financial advisors also warn to be wary of bad products with confusing returns. Plus, there are so many varieties of annuities available, it can be difficult to

How to Get Guaranteed Retirement Income for Life

Retirement Income for Life Hitting retirement and having no guaranteed income can be detrimental to your health. According to the American Psychological Association, older individuals with lower socio-economic status are at risk for increased mortality rates, higher stroke incidence, higher progressive chronic kidney disease, and lower health-related quality of life. So, having a secure way to receive a steady income after retirement will help you live a full life. But how do you go about doing that? How do you get guaranteed retirement income for life right now? Well, we’re here to talk about how you can get a guaranteed income stream with an annuity and avoid the scammers because they are out there. So, let’s dig in. How Does An Immediate Annuity Work? A single premium

What Happens If I Die Before I Begin To Receive Payments From My Annuity?

What Happens If I Die Before I Begin To Receive Payments From My Annuity? In the unfortunate event of the contract owner’s death before income payments begin, the beneficiary may receive a death benefit from the annuity. In some contracts, the death benefit will be based on the account value. Other contracts use the surrender value or other applicable contract value to calculate the death benefit. What if you have a spouse? Does he or she have inherent rights? If your spouse is the surviving joint owner or sole beneficiary, then he/she may have the ownership rights with all rights and privileges of the original owner, as allowed by IRS regulations.

Death Benefit Rider: Increase A Phantom Account Value By 7-8%

Death Benefit Rider Basic Death Benefit Rider: Most carriers will give the beneficiary of the account value when the annuitant passes. Some insurance carries will have a death benefit rider that you can purchase. This will increase a phantom account value by 7-8% simple interest every year all the way until the end of their lives. Consequently, this is probably purchased because the owner or annuitant cannot purchase life insurance and does not need income from this acquired money. If you are interested in learning more just reach out to us! We are here to help and give you the facts. Please share this article. Help us increase understanding of some of the most widely misunderstood personal and business finance options.

Two Distinct Phases of an Annuity

What Are the Two Phases of an Annuity? The Accumulation (or Investment) Phase: This is the phase in which you add money to the annuity and collect interest in some form. A purchased deferred annuity is necessary when this option is utilized. You can purchase one in one lump sum. You can make investments periodically over time. The Distribution Phase: This occurs when you begin distributions from the annuity. Two general options for receiving distributions are available. The first option allows some or all of the money in the annuity to be withdrawn in a lump sum. The full contract value can be “rolled” into another agreement without paying taxes. This is called a 1035 exchange. The second option while using an income rider is to turn on the income