Annuities & Life insurance

by Guest » Thu Mar 06, 2008 06:41 am

Do the annuities go hand in hand with life insurance? Is it really worth investing?

Total Comments: 6

Posted: Thu Mar 06, 2008 07:00 am Post Subject:

Yes, my friend, annuities would serve a lot of jobs to you if you are looking for an ideal option to save money !
Believe me, your income objectives can be met through deferred annuities. In order to earn good returns you'd need to invest through different channels in connection with your assets.
Remember, that when you'd need to withdraw money from your annuity, you'd just be paying tax at the normal income rate & not a single penny more. Now its up to you to conduct a small research before you take the final decision. Good luck! Marmaladegal

Posted: Thu Mar 06, 2008 08:57 am Post Subject:

Hi guys,

I feel it is quite important to include both life insurance & annuities as a part of your future financial planning. Both of these forms of investments would offer death benefits. Normally, you would pick a life insurance policy to support your family in the event you die sooner. On the otherhand, you'd invest upon an annuity for your long term future. This sums up the fact to be:
Age of Buyer-
TermL WholeL Def.Ann. Imm. Ann.

|25-50| |30-60| |40-65| |55-80|

Hope that explains it in a bit more vivid way!

Posted: Thu Mar 06, 2008 09:23 am Post Subject:

Well..I feel its all about ascertaining your immediate financial requirements. Def. Annuity allows you to have cash when you need it the most & you won't even be penalized for that. But see, if you own immediate annuity, then you can't really have money whenever you need. In that case, you just need to remain contended with the payments that are being offered to you from time to time.

Posted: Thu Mar 06, 2008 01:50 pm Post Subject:

Annuities oftentimes get a bad reputation because people use them like a 6 month Certificate of Deposit (CD). They are not.

Deferred annuities are for the long haul. If you cannot afford to be without the money for at least 7 or 8 years, you should not buy a deferred annuity.

Most deferred annuites have "Withdrawal Penalties" and if you withdraw your money during this penalty period (usually from 7 to 8 years), it will cost you. Annuity contracts vary from company to company, so read the withdrawal provisions before you buy.

Deferred Annuities, traditional or indexed, are excellent vehicles for accumulating wealth if they are properly designed and the money is to be used sometime in the future, like for retirement.

These annuities can be set up as traditional IRA's. You can also roll a 401(k) plan that you left with a previous employer into a qualified annuity.

Immediate annuities provide an immediate income, usually starting 30 days or so form the date the money is desposited into the annuity. Payments can be designed as a specific dollar amount or payments for an established period of time, say 20 years.

Annuities are excellent savings vehicles, but you must understand how they work.


Posted: Thu Mar 06, 2008 07:47 pm Post Subject:

As well, don't forget the federal penalties that apply to early withdrawal of annuity funds prior to age 59 1/2. They can be ugly. I can explain if anyone wishes...

InsTeacher 8)

Posted: Fri Mar 07, 2008 12:01 am Post Subject:

Hey Teach,

I didn't want to overload the post and blow up the server, so I didn't even mention the tax implications.

Go ahead, let her fly! :lol:

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