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Will You Add? - An Annuities Primer
I have recently been doing quite a bit of work in the European Community and more particularly in the UK. One of the things that I've found interesting is that many of our European brethren are not familiar with the term "C-suite executive". As the yank from the colonies I've found myself attempting to rationally explain the phenomenon of “Title Proliferation” (which is comprised of "Title Escalation" and "Title Inflation") that we've experienced in the US over the last several years. After a few explanations and a little reflection, I thought this topic worthy of today's blog post (or blog venting session as the case may be).It wasn't that long ago that we only had a handful of C-suite positions: Chairman of the Board, Chief Executive Officer, Chief Operating Officer and Chief Financial Officer...Oh what a wonderful era when Corporate America was a simple place where a president was a president and not a division manager posing as a president.All kidding as
1) avoid probate,
2) protect assets held in trust from mismanagement by a parent of guardians, and
3) continue benefits to the annuitant’s heirs, thus making annuities effective multigenerational planning vehicles.
Market Overview
With their unique advantages, a growing market for annuities has grown among individuals with longer-term wealth accumulation and retirement planning needs, as well as individuals with immediate income needs. Let's consider how two types of annuities can be used to address the wealth accumulation and retirement planning problems we all face. These are:
• Non-qualified Annuities
• Qualified Annuities
Non-Qualified Annuities -- Non-qualified annuities are purchased with after-tax dollars to meet longer-term wealth accumulation or retirement planning needs--with emphasis on longer-term.
As noted, deferred annuities may not be appropriate for shorte
As a home business, one of the ways you probably drive traffic to your website is through search engine traffic. You probably also rely on Google ranking your website in the top of its search engine listings.If you haven't checked your Google listing recently, you might want to pay careful attention and do so. Even if you've been ranked well with your Google keywords, your website ranking might have dropped by hundreds of positions. You might find yourself desperately looking for ways to bring your site back up to the top positions.Here are major reasons why these changes are occurring: Google is using a variety of filters and algorithms to rank web pages in its search results. Google constantly updates these filters and algorithms so listings are "relevant" to the keywords people are searching for. As well, Google wants to keep other webmasters sure to be guessing what is happening next.Unfortunately, if search engines don't m
In 17th century Europe, annuities were used as fundraising devices by governments to finance their ongoing wars with neighboring nations. These governments would offer “tontines,” which promised payments into the future to those who bought shares.
In the 18th century annuities were introduced to North America, with private insurance companies selling insurance and annuity contracts to individuals wanting to avoid outliving their resources, In 1759 in Pennsylvania a company was formed to benefit Presbyterian ministers and their families. The ministers would contribute to a fund, in exchange for lifetime payments. In 1912, the Pennsylvania Company for Insurance on Lives and Granting Annuities became the first American company to offer annuities to the public.
However, annuities experienced a huge growth in popularity during the late 1930s when the collapsing financial markets turned many people away from equities in favor of products from more secure institutions—insurance companies that could and did make annuity payments, as promised.
Early annuities were simple contracts guaranteeing a return of principal and fixed rates of return from the insurance company during the accumulation phase. At withdrawal, the annuitant chose either a fixed income for life or payments over a specific number of years.
Buyers have always been drawn to annuities by their tax-deferred status. As a consequence of being issued by insurance companies, annuities have always been able to accumulate without taxes being taken out at year-end, which has added the time value of money to their list of advantages.
The most recent major development has been the inception in 1952 of variable annuities, which offer the investment features of separate mutual fund accounts inside the annuity with the tax-deferral available from life insurance products. Variable Annuity owners choose the type of accounts to use, often receiving modest guarantees from the issuer in exchange for the greater risks assumed.
“The shift to investment-linked annuities has been so marked that 25,000 investment-linked annuities were sold [in 2001] - 9.5% of all annuity business,” reports Peter Quinton is managing director of The Annuity Bureau, adding that “it's likely that the popularity of these annuity will continue to increase as they are the only at-retirement products that offer retirees a half-way house between the two extremes of purchasing a safe conventional annuity and opting for a investment-linked income drawdown plan, where the cross-subsidy system does not apply.” Source: Pensions Management; 12/1/2002
Wider Choices
Although long part of well-diversified financial portfolios, annuities have continued to evolve. Recent developments have included features such as adding checkbook access to Variable Annuity funds, more attractive "bonus" rates, shorter maturity periods, and guaranteed death benefits.
But consumers now have wider choices of annuity types, plus more investment options and guarantees to fit their investment and income goals. For example, some annuities offer guaranteed bonus interest rates for the first few years or guaranteed returns for the life of the contract. Other annuities guarantee beneficiaries the return of principal if the annuitant dies and the annuity stock market investments have lost value.
Although annuities have evolved, their primary objective remains the same. That is, being able to lock in a guaranteed payout that cannot be outlived. As people live longer, healthier lives--and the equities markets remain subject to unsettling fluctuations--financial products offering safety, flexibility and guaranteed returns are increasingly appealing to older consumers. However, investors of all ages are drawn to variable annuities whose return is tied to the stock market, but which also offer guaranteed minimum returns not tied to market performance.
Annuities are accessible. Because there are no contribution limits, people can invest as much or as little as they chose in annuities no matter what their income levels. And this money grows on a tax-deferred basis until the accumulated earnings are distributed, usually at retirement.
Moreover, unlike other tax-deferred investments during the distribution phase, annuities’ tax-deferred earnings are not counted in determining a person’s income taxes on Social Security benefits. At the same time, while annuitants cannot outlive their guaranteed benefits, properly structured annuity contracts and beneficiary designations can:
1) avoid probate,
2) protect assets held in trust from mismanagement by a parent of guardians, and
3) continue benefits to the annuitant’s heirs, thus making annuities effective multigenerational planning vehicles.
Market Overview
With their unique advantages, a growing market for annuities has grown among individuals with longer-term wealth accumulation and retirement planning needs, as well as individuals with immediate income needs. Let's consider how two types of annuities can be used to address the wealth accumulation and retirement planning problems we all face. These are:
• Non-qualified Annuities
• Qualified Annuities
Non-Qualified Annuities -- Non-qualified annuities are purchased with after-tax dollars to meet longer-term wealth accumulation or retirement planning needs--with emphasis on longer-term.
As noted, deferred annuities may not be appropriate for shorter
So you have a nice looking website, which has good content and is well optimised, however you are looking to earn some additional income from the site. What are the next steps you can take to make this happen? This article gives useful tips and advice, which I hope will answer this question for you.I have a large number of websites and am eager to learn about the latest website promotion methods, and about ways to increase your websites page rank in google.One way of earning money from your site is by joining one or more affiliate schemes. Commissions vary, however if you have a high traffic site then you can do very well from these schemes.Joining a program like google adsense is something which I prefer. This is where google place targeted adverts on your website and basically you earn money when people click on one of the ads. Depending on the website subject matter, these clicks can earn quite a high rate of commission. I had one click, on one of m
Early annuities were simple contracts guaranteeing a return of principal and fixed rates of return from the insurance company during the accumulation phase. At withdrawal, the annuitant chose either a fixed income for life or payments over a specific number of years.
Buyers have always been drawn to annuities by their tax-deferred status. As a consequence of being issued by insurance companies, annuities have always been able to accumulate without taxes being taken out at year-end, which has added the time value of money to their list of advantages.
The most recent major development has been the inception in 1952 of variable annuities, which offer the investment features of separate mutual fund accounts inside the annuity with the tax-deferral available from life insurance products. Variable Annuity owners choose the type of accounts to use, often receiving modest guarantees from the issuer in exchange for the greater risks assumed.
“The shift to investment-linked annuities has been so marked that 25,000 investment-linked annuities were sold [in 2001] - 9.5% of all annuity business,” reports Peter Quinton is managing director of The Annuity Bureau, adding that “it's likely that the popularity of these annuity will continue to increase as they are the only at-retirement products that offer retirees a half-way house between the two extremes of purchasing a safe conventional annuity and opting for a investment-linked income drawdown plan, where the cross-subsidy system does not apply.” Source: Pensions Management; 12/1/2002
Wider Choices
Although long part of well-diversified financial portfolios, annuities have continued to evolve. Recent developments have included features such as adding checkbook access to Variable Annuity funds, more attractive "bonus" rates, shorter maturity periods, and guaranteed death benefits.
But consumers now have wider choices of annuity types, plus more investment options and guarantees to fit their investment and income goals. For example, some annuities offer guaranteed bonus interest rates for the first few years or guaranteed returns for the life of the contract. Other annuities guarantee beneficiaries the return of principal if the annuitant dies and the annuity stock market investments have lost value.
Although annuities have evolved, their primary objective remains the same. That is, being able to lock in a guaranteed payout that cannot be outlived. As people live longer, healthier lives--and the equities markets remain subject to unsettling fluctuations--financial products offering safety, flexibility and guaranteed returns are increasingly appealing to older consumers. However, investors of all ages are drawn to variable annuities whose return is tied to the stock market, but which also offer guaranteed minimum returns not tied to market performance.
Annuities are accessible. Because there are no contribution limits, people can invest as much or as little as they chose in annuities no matter what their income levels. And this money grows on a tax-deferred basis until the accumulated earnings are distributed, usually at retirement.
Moreover, unlike other tax-deferred investments during the distribution phase, annuities’ tax-deferred earnings are not counted in determining a person’s income taxes on Social Security benefits. At the same time, while annuitants cannot outlive their guaranteed benefits, properly structured annuity contracts and beneficiary designations can:
1) avoid probate,
2) protect assets held in trust from mismanagement by a parent of guardians, and
3) continue benefits to the annuitant’s heirs, thus making annuities effective multigenerational planning vehicles.
Market Overview
With their unique advantages, a growing market for annuities has grown among individuals with longer-term wealth accumulation and retirement planning needs, as well as individuals with immediate income needs. Let's consider how two types of annuities can be used to address the wealth accumulation and retirement planning problems we all face. These are:
• Non-qualified Annuities
• Qualified Annuities
Non-Qualified Annuities -- Non-qualified annuities are purchased with after-tax dollars to meet longer-term wealth accumulation or retirement planning needs--with emphasis on longer-term.
As noted, deferred annuities may not be appropriate for shorte
Do you have any money set aside in a reserve fund in case there is an emergency in your life? If you don't, it worthwhile to give it a deep thought now because no one knows when an emergency could occur, you need an emergency fund to manage through any unforeseen incident that may happen at any point of your life.So, what is an emergency fund? This is a fund to be used when a hurricane or a tornado blows the roof off your house, you lose your job, or your union calls a strike. The need could come in the form of a disability or an illness that keeps your our of work for an extended period of time, or it could be the immediate expenses of an untimely death in the family. In short, it is a poll of money that you put aside and the uses of any unexpected incidents.How much should you Save? The is no an exact answer on how much should you save in your emergency fund, it be an amount that makes sense for you. It will depend on wheth
“The shift to investment-linked annuities has been so marked that 25,000 investment-linked annuities were sold [in 2001] - 9.5% of all annuity business,” reports Peter Quinton is managing director of The Annuity Bureau, adding that “it's likely that the popularity of these annuity will continue to increase as they are the only at-retirement products that offer retirees a half-way house between the two extremes of purchasing a safe conventional annuity and opting for a investment-linked income drawdown plan, where the cross-subsidy system does not apply.” Source: Pensions Management; 12/1/2002
Wider Choices
Although long part of well-diversified financial portfolios, annuities have continued to evolve. Recent developments have included features such as adding checkbook access to Variable Annuity funds, more attractive "bonus" rates, shorter maturity periods, and guaranteed death benefits.
But consumers now have wider choices of annuity types, plus more investment options and guarantees to fit their investment and income goals. For example, some annuities offer guaranteed bonus interest rates for the first few years or guaranteed returns for the life of the contract. Other annuities guarantee beneficiaries the return of principal if the annuitant dies and the annuity stock market investments have lost value.
Although annuities have evolved, their primary objective remains the same. That is, being able to lock in a guaranteed payout that cannot be outlived. As people live longer, healthier lives--and the equities markets remain subject to unsettling fluctuations--financial products offering safety, flexibility and guaranteed returns are increasingly appealing to older consumers. However, investors of all ages are drawn to variable annuities whose return is tied to the stock market, but which also offer guaranteed minimum returns not tied to market performance.
Annuities are accessible. Because there are no contribution limits, people can invest as much or as little as they chose in annuities no matter what their income levels. And this money grows on a tax-deferred basis until the accumulated earnings are distributed, usually at retirement.
Moreover, unlike other tax-deferred investments during the distribution phase, annuities’ tax-deferred earnings are not counted in determining a person’s income taxes on Social Security benefits. At the same time, while annuitants cannot outlive their guaranteed benefits, properly structured annuity contracts and beneficiary designations can:
1) avoid probate,
2) protect assets held in trust from mismanagement by a parent of guardians, and
3) continue benefits to the annuitant’s heirs, thus making annuities effective multigenerational planning vehicles.
Market Overview
With their unique advantages, a growing market for annuities has grown among individuals with longer-term wealth accumulation and retirement planning needs, as well as individuals with immediate income needs. Let's consider how two types of annuities can be used to address the wealth accumulation and retirement planning problems we all face. These are:
• Non-qualified Annuities
• Qualified Annuities
Non-Qualified Annuities -- Non-qualified annuities are purchased with after-tax dollars to meet longer-term wealth accumulation or retirement planning needs--with emphasis on longer-term.
As noted, deferred annuities may not be appropriate for shorte
Hyperboles abound in Internet Marketing. Myth has its own area code. Hype has its own country. And BS, its own universe.Anyone desiring to enter this perilous terrain should proceed with caution. Wearing a full body hype-resistant armor is strongly recommended. If that's not available, growing a second layer of thick skin is advisable.For the beginning marketer, novice webmaster or the Internet hobbyist who just wants to earn a little extra income, all the hype can be a little overwhelming. All the rhetoric may prove totally mind boggling. Deadly even.Who to believe? What to believe?It's a virtual mine field and you only have your cursor for a guide. It can be down right scary if you're not prudent with your checkbook or your morals you can be misled, swindled, and beguiled before you even turn on your computer.Separating fact from fiction requires a considerable skill, usually reserved for the judgments of Solomon.he first few years or guaranteed returns for the life of the contract. Other annuities guarantee beneficiaries the return of principal if the annuitant dies and the annuity stock market investments have lost value.
Although annuities have evolved, their primary objective remains the same. That is, being able to lock in a guaranteed payout that cannot be outlived. As people live longer, healthier lives--and the equities markets remain subject to unsettling fluctuations--financial products offering safety, flexibility and guaranteed returns are increasingly appealing to older consumers. However, investors of all ages are drawn to variable annuities whose return is tied to the stock market, but which also offer guaranteed minimum returns not tied to market performance.
Annuities are accessible. Because there are no contribution limits, people can invest as much or as little as they chose in annuities no matter what their income levels. And this money grows on a tax-deferred basis until the accumulated earnings are distributed, usually at retirement.
Moreover, unlike other tax-deferred investments during the distribution phase, annuities’ tax-deferred earnings are not counted in determining a person’s income taxes on Social Security benefits. At the same time, while annuitants cannot outlive their guaranteed benefits, properly structured annuity contracts and beneficiary designations can:
1) avoid probate,
2) protect assets held in trust from mismanagement by a parent of guardians, and
3) continue benefits to the annuitant’s heirs, thus making annuities effective multigenerational planning vehicles.
Market Overview
With their unique advantages, a growing market for annuities has grown among individuals with longer-term wealth accumulation and retirement planning needs, as well as individuals with immediate income needs. Let's consider how two types of annuities can be used to address the wealth accumulation and retirement planning problems we all face. These are:
• Non-qualified Annuities
• Qualified Annuities
Non-Qualified Annuities -- Non-qualified annuities are purchased with after-tax dollars to meet longer-term wealth accumulation or retirement planning needs--with emphasis on longer-term.
As noted, deferred annuities may not be appropriate for shorte
Do You know that article marketing can help You to dominate niche markets in the search engines with little or no SEO knowledge?The Key to dominating a niche in the search engines is to find a keyword for Your site that has very little competition. And these are not hard to find.Use a keyword research tool like wordtracker.com to find search terms that are often used, but have very few sites in Google that are optimized for this term.Then set up a new website that is optimized for just that one keyword or keyphrase. Best thing to do is to have a domain name that includes the keyword.You will now have to write some articles on that keyword. Submit that Article to as many quality article directories You can find. This will provide Your new Site with lot`s of quality backlinks.It is very likely that You will get a much better ranking than many other sites with this technique, because the Link Popularity is so important for a goo
1) avoid probate,
2) protect assets held in trust from mismanagement by a parent of guardians, and
3) continue benefits to the annuitant’s heirs, thus making annuities effective multigenerational planning vehicles.
Market Overview
With their unique advantages, a growing market for annuities has grown among individuals with longer-term wealth accumulation and retirement planning needs, as well as individuals with immediate income needs. Let's consider how two types of annuities can be used to address the wealth accumulation and retirement planning problems we all face. These are:
• Non-qualified Annuities
• Qualified Annuities
Non-Qualified Annuities -- Non-qualified annuities are purchased with after-tax dollars to meet longer-term wealth accumulation or retirement planning needs--with emphasis on longer-term.
As noted, deferred annuities may not be appropriate for shorter-term wealth accumulation purposes — generally those that will materialize before age 59?; while immediate annuities are designed to provide long-term income — that is, income guaranteed for life.
Non-qualified annuities are used to fund cash accumulation programs that do not qualify for a front-end tax deduction; but whether an annuity is qualified or non-qualified, premiums always accumulate interest that is free of current income tax until withdrawn. But non-qualified annuities also allow owners to continue tax deferral beyond the age 70, the mandatory withdrawal age for traditional IRA's and qualified retirement plans.
Qualified Annuities-- Annuities can also accommodate tax-qualified money. A qualified annuity is used to fund a tax-qualified retirement plan such as a traditional IRA or an HR-10. Thus in most cases, premiums paid to qualified annuities are tax-deductible. For instance, when people change jobs and have 401(k) funds to move or already have IRAs and are seeking a more diversified portfolio. They can reduce their portfolio exposure by rolling the money over into an annuity without losing tax advantages.
Or suppose Alice inherits $20,000. If she doesn’t need the money right away and wants to build a long-term nest egg, she might consider putting the inheritance into an annuity. By doing so, she’ll gain the advantage of tax-deferral, and when it’s time to withdraw funds from her non-qualified annuity, Alice will only be taxed on the accumulated interest, not the principal.
Generally, annuities are not suitable estate planning vehicles, but are useful in meeting immediate and retirement income needs. Thus, iif you’re a candidate for wealth accumulation and retirement planning, remember: "The only person who can take care of the older person we will someday be is the younger person we are now."
Want More? Send questions and comments to w.willard3@knology.net
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